1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 15891.2A bill for an act1.3relating to the operation of state government finance; allowing the secretary of 1.4state authority to accept funds from local government units for election systems 1.5enhancements and to receive certain funds for the address confidentiality program; 1.6allowing the state auditor to charge a onetime user fee for a small city and 1.7town accounting system software; changing provisions for bid solicitations and 1.8proposals; changing certain provisions for service contracts and the solicitation 1.9process; requiring a determination of the IT cost for agency technology 1.10projects; expanding E-Government initiative and establishing the E-Government 1.11Advisory Council; changing certain audit provisions from the state auditor to 1.12the legislative auditor; repealing the Minnesota Sunset Act; changing provisions 1.13for barbering and cosmetology; changing licensing provisions for accountants; 1.14changing a paid military leave provision; modifying provisions in the Veterans 1.15Service Office grant program; changing provision in the Minnesota GI Bill 1.16program; establishing a veterans home in Beltrami County; making Department 1.17of Revenue changes; making compensation council changes and requiring a 1.18compensation study; adjusting certain salary groups; establishing administrative 1.19penalties; establishing fees; appropriating money;amending Minnesota Statutes 1.202012, sections 3.099, subdivision 1; 3.855, subdivision 3; 13.591, subdivision 1.213; 15A.0815, subdivisions 1, 2, 3, 5; 15A.082, subdivision 2; 16A.82; 16C.02, 1.22subdivision 13; 16C.06, subdivision 2; 16C.09; 16C.10, subdivision 6; 16C.145; 1.2316C.33, subdivision 3; 16C.34, subdivision 1; 16E.07, by adding a subdivision; 1.2432C.04; 43A.17, subdivisions 1, 3; 65B.84, subdivision 1; 154.001, by adding a 1.25subdivision; 154.003; 154.02; 154.05; 154.06; 154.065, subdivision 2; 154.07, 1.26subdivision 1; 154.08; 154.09; 154.10, subdivision 1; 154.11, subdivision 1; 1.27154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23, subdivision 3; 155A.25, 1.28subdivisions 1a, 4; 155A.27, subdivisions 4, 7, 10; 155A.29, subdivision 2; 1.29155A.30, subdivision 1, by adding subdivisions; 192.26; 197.608, subdivisions 1.301, 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, subdivision 2; 254A.04; 1.31256B.093, subdivision 1; 260.835, subdivision 2; 270C.69, subdivision 1; 1.32289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 295.55, subdivision 1.334; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a 1.34subdivision; 297I.35, subdivision 2; 326A.04, subdivisions 2, 3, 5, 7; 326A.10; 1.35469.3201; 473.843, subdivision 3; Laws 2012, chapter 278, article 1, section 5; 1.36article 2, sections 27; 34; proposing coding for new law in Minnesota Statutes, 1.37chapters 4; 5; 5B; 6; 16E; 154; 155A; 198; 297I; repealing Minnesota Statutes 1.382012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 3D.06; 3D.065; 1.393D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 3D.17; 1.403D.18; 3D.19; 3D.20; 3D.21, subdivisions 2, 3, 4, 5, 6, 7, 8; 43A.17, subdivision 1.414; 155A.25, subdivision 1; 168A.40, subdivisions 3, 4; 197.608, subdivision 2a; 1.42270C.145; 326A.03, subdivisions 2, 5, 8; Laws 2012, chapter 278, article 1, 1.43section 6; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700.2.1May 19, 20132.2The Honorable Sandra L. Pappas2.3President of the Senate2.4The Honorable Paul Thissen2.5Speaker of the House of Representatives2.6We, the undersigned conferees for S.F. No. 1589 report that we have agreed upon 2.7the items in dispute and recommend as follows:2.8That the House recede from its amendments and that S.F. No. 1589 be further 2.9amended as follows:2.10Delete everything after the enacting clause and insert:2.11"ARTICLE 12.12STATE GOVERNMENT APPROPRIATIONS

2.13Section 1. STATE GOVERNMENT APPROPRIATIONS.

2.14    The sums shown in the columns marked "Appropriations" are appropriated to the 2.15agencies and for the purposes specified in this article. The appropriations are from the 2.16general fund, or another named fund, and are available for the fiscal years indicated 2.17for each purpose. The figures "2014" and "2015" used in this article mean that the 2.18appropriations listed under them are available for the fiscal year ending June 30, 2014, or 2.19June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 2.20year 2015. "The biennium" is fiscal years 2014 and 2015. 

2.21APPROPRIATIONS2.22Available for the Year2.23Ending June 302.2420142015

2.25Sec. 2. LEGISLATURE

2.26Subdivision 1.Total Appropriation$69,470,000$68,970,000

2.27Appropriations by Fund2.28201420152.29General69,342,00068,842,0002.30Health Care Access128,000128,000

2.31The amounts that may be spent for each 2.32purpose are specified in the following 2.33subdivisions.

2.34Subd. 2.Senate23,133,00022,633,000

2.35Subd. 3.House of Representatives30,524,00030,524,000

3.1During the biennium ending June 30, 2015, 3.2any revenues received by the house of 3.3representatives from voluntary donations 3.4to support broadcast or print media are 3.5appropriated to the house of representatives.

3.6Subd. 4.Legislative Coordinating Commission15,813,00015,813,000

3.7Appropriations by Fund3.8General15,685,00015,685,0003.9Health Care Access 128,000128,000

3.10From its funds, $10,000 each year is for 3.11purposes of the legislators' forum, through 3.12which Minnesota legislators meet with 3.13counterparts from South Dakota, North 3.14Dakota, and Manitoba to discuss issues of 3.15mutual concern.3.16The Legislative Coordinating Commission 3.17is authorized to enter into an agreement 3.18with the National Conference of State 3.19Legislatures to provide the organization up to 3.20$100,000 of its funds to support activities in 3.21preparation for the annual conference to be 3.22held in Minnesota in 2014. It is anticipated 3.23that these funds will be returned to the 3.24Legislative Coordinating Commission, and 3.25are reappropriated to the commission.

3.263.27Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR$3,353,000$3,353,000

3.28(a) This appropriation is to fund the Office of 3.29the Governor and Lieutenant Governor.3.30(b) $19,000 the first year and $19,000 the 3.31second year are for necessary expenses in the 3.32normal performance of the Governor's and 3.33Lieutenant Governor's duties for which no 3.34other reimbursement is provided.4.1(c) By September 1 of each year, the 4.2commissioner of management and budget 4.3shall report to the chairs and ranking minority 4.4members of the senate State Departments 4.5and Veterans Affairs Budget Division and the 4.6house of representatives State Government 4.7Finance Committee any personnel costs 4.8incurred by the Offices of the Governor and 4.9Lieutenant Governor that were supported 4.10by appropriations to other agencies during 4.11the previous fiscal year. The Office of the 4.12Governor shall inform the chairs and ranking 4.13minority members of the committees before 4.14initiating any interagency agreements.

4.15Sec. 4. STATE AUDITOR$2,070,000$2,121,000

4.16Sec. 5. ATTORNEY GENERAL$24,342,000$24,342,000

4.17Appropriations by Fund4.18201420154.19General22,125,00022,125,0004.204.21State Government Special Revenue1,822,0001,822,0004.22Environmental145,000145,0004.23Remediation250,000250,000

4.24Of this appropriation, $65,000 in the first 4.25year and $65,000 in the second year are 4.26from the general fund for transfer to the 4.27commissioner of public safety for a grant to 4.28the Minnesota County Attorneys Association 4.29for prosecutor and law enforcement training.

4.30Sec. 6. SECRETARY OF STATE$5,938,000$6,583,000

4.31Any funds available in the account 4.32established in Minnesota Statutes, section 4.335.30, pursuant to the Help America Vote Act, 5.1is appropriated for the purposes and uses 5.2authorized by federal law.5.3Redistricting Case. $355,000 the first year 5.4is appropriated to the secretary of state to 5.5be used to pay attorney fees as ordered by 5.6the court in the legislative and congressional 5.7redistricting case Hippert et al. v. Ritchie 5.8et al., A11-152, and interest thereon. This 5.9appropriation is available for expenditure the 5.10day following final enactment.

5.115.12Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD$1,000,000$1,000,000

5.13Sec. 8. INVESTMENT BOARD$139,000$139,000

5.14Sec. 9. ADMINISTRATIVE HEARINGS$7,732,000$7,506,000

5.15Appropriations by Fund5.16201420155.17General482,000256,0005.185.19Workers' Compensation7,250,0007,250,000

5.20Campaign Violations Hearings. (a) 5.21$130,000 the first year is appropriated from 5.22the general fund for the cost of considering 5.23complaints filed under Minnesota Statutes, 5.24section 211B.32. Any amount of this 5.25appropriation that remains unspent at the 5.26end of the biennium must be canceled to 5.27the general account of the state elections 5.28campaign fund. The base for fiscal year 2016 5.29is $130,000, to be available for the biennium, 5.30under the same terms. 5.31(b) $60,000 the first year is appropriated 5.32from the general fund to cover the fiscal year 5.332013 costs of campaign violations hearings. 5.34This is a onetime appropriation.6.1Data Practices Hearings. $36,000 the first 6.2year is appropriated from the general fund 6.3to cover the fiscal year 2013 costs for data 6.4practices hearings.

6.56.6Sec. 10. OFFICE OF ENTERPRISE TECHNOLOGY$2,431,000$2,431,000

6.7During the biennium ending June 30, 2015, 6.8the Office of Enterprise Technology must 6.9not charge fees to a public noncommercial 6.10educational television broadcast station 6.11eligible for funding under Minnesota 6.12Statutes, chapter 129D, for access to the 6.13state broadcast infrastructure. If the access 6.14fees not charged to public noncommercial 6.15educational television broadcast stations total 6.16more than $400,000 for the biennium, the 6.17office may charge for access fees in excess 6.18of these amounts.6.19The commissioner of Minnesota management 6.20and budget is authorized to provide cash 6.21flow assistance of up to $110,000,000 from 6.22the special revenue fund or other statutory 6.23general funds as defined in Minnesota 6.24Statutes, section 16A.671, subdivision 3, 6.25paragraph (a), to the Office of Enterprise 6.26Technology for the purpose of managing 6.27revenue and expenditure differences during 6.28the initial phases of IT consolidation. These 6.29funds shall be repaid with interest by June 6.3030, 2015.

6.31Sec. 11. ADMINISTRATION

6.32Subdivision 1.Total Appropriation$ 20,532,000$ 20,202,000

7.1The amounts that may be spent for each 7.2purpose are specified in the following 7.3subdivisions.

7.4Subd. 2.Government and Citizen Services7,698,0007,668,000

7.5$74,000 the first year and $74,000 the second 7.6year are for the Council on Developmental 7.7Disabilities.7.8Nellie Stone Johnson bust or statue.7.9 $30,000 is to place a bust or statue of Nellie 7.10Stone Johnson in the State Capitol Building. 7.11This appropriation is contingent on receipt of 7.12an equal nonstate match. The commissioner 7.13must follow the process in Minnesota 7.14Statutes, sections 138.67 to 138.70, in the 7.15acquisition and placement of the bust or 7.16statue. This appropriation is available until 7.17expended.

7.18Subd. 3.Strategic Management Services1,757,0001,757,000

7.19Subd. 4.Fiscal Agent 11,077,000 10,777,000

7.20The appropriations under this section are to 7.21the commissioner of administration for the 7.22purposes specified.7.23In-Lieu of Rent. $8,158,000 the first year 7.24and $8,158,000 the second year are for 7.25space costs of the legislature and veterans 7.26organizations, ceremonial space, and 7.27statutorily free space.7.28Public Broadcasting. (a) $1,550,000 the 7.29first year and $1,550,000 the second year are 7.30for matching grants for public television.7.31(b) $250,000 the first year and $250,000 7.32the second year are for public television 7.33equipment grants.8.1(c) The equipment or matching grants in 8.2paragraphs (a) and (b) must be allocated 8.3after considering the recommendations of the 8.4Minnesota Public Television Association.8.5(d) $392,000 the first year and $392,000 the 8.6second year are for community service grants 8.7to public educational radio stations. This 8.8appropriation may be used to disseminate 8.9emergency information in foreign languages.8.10(e) $117,000 the first year and $117,000 8.11the second year are for equipment grants 8.12to public educational radio stations. This 8.13appropriation may be used for the repair, 8.14rental, and purchase of equipment including 8.15equipment under $500.8.16(f) The grants in paragraphs (d) and (e) 8.17must be allocated after considering the 8.18recommendations of the Association of 8.19Minnesota Public Education Radio Stations 8.20under Minnesota Statutes, section 129D.14.8.21(g) $610,000 the first year and $310,000 8.22the second year are for equipment grants 8.23to Minnesota Public Radio, Inc., including 8.24upgrades to Minnesota's Emergency Alert 8.25and AMBER Alert Systems.8.26(h) Any unencumbered balance remaining 8.27the first year for grants to public television or 8.28radio stations does not cancel and is available 8.29for the second year.

8.308.318.32Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD$335,000$335,000

8.338.34Sec. 13. MINNESOTA MANAGEMENT AND BUDGET$28,144,000$20,369,000

9.1Statewide Budget System. $4,500,000 for 9.2the biennium is to continue development 9.3of the new statewide budget system and to 9.4develop new capabilities including, but not 9.5limited to, capital budget and fiscal notes.

9.6Sec. 14. REVENUE

9.7Subdivision 1.Total Appropriation$140,673,000$140,137,000

9.8Appropriations by Fund9.9201420159.10General136,438,000135,902,0009.11Health Care Access1,749,0001,749,0009.129.13Highway User Tax Distribution2,183,0002,183,0009.14Environmental303,000303,000

9.15Subd. 2.Tax System Management112,057,000111,521,000

9.16Appropriations by Fund9.17General107,822,000107,286,0009.18Health Care Access1,749,0001,749,0009.199.20Highway User Tax Distribution2,183,0002,183,0009.21Environmental303,000303,000

9.22County Technical Assistance Grants. (a) 9.23The commissioner of revenue may make 9.24technical assistance grants to counties to 9.25fund development, implementation, or 9.26maintenance of data collection and data 9.27processing systems that will facilitate 9.28improved reporting of property tax data 9.29on parcels and portions of parcels to 9.30the commissioner for analytical and 9.31administrative use. The grants may be made 9.32in the order they are requested, or on some 9.33other basis determined by the commissioner. 9.34The commissioner shall determine whether to 9.35require an application or recipient agreement 10.1and shall determine the form and content of 10.2the application or agreement.10.3(b) $300,000 is appropriated to the 10.4commissioner from the general fund in fiscal 10.5year 2014 to make grants to counties as 10.6provided in this section. This appropriation 10.7is available for fiscal years 2014 and 2015 10.8only, and does not become part of the base.10.9Appropriation; Taxpayer Assistance. (a) 10.10$200,000 in fiscal year 2014, and $200,000 10.11in fiscal year 2015, are added to the base 10.12appropriation of $200,000 each year. These 10.13amounts are appropriated from the general 10.14fund to the commissioner of revenue to 10.15make grants to one or more nonprofit 10.16organizations, qualifying under section 10.17501(c)(3) of the Internal Revenue Code of 10.181986, to coordinate, facilitate, encourage, and 10.19aid in the provision of taxpayer assistance 10.20services. The unencumbered balance in the 10.21first year does not cancel but is available for 10.22the second year.10.23(b) For purposes of this section, "taxpayer 10.24assistance services" means accounting 10.25and tax preparation services provided by 10.26volunteers to low-income, elderly, and 10.27disadvantaged Minnesota residents to help 10.28them file federal and state income tax returns 10.29and Minnesota property tax refund claims 10.30and to provide personal representation before 10.31the Department of Revenue and Internal 10.32Revenue Service.

10.33Subd. 3.Debt Collection Management28,616,00028,616,000

10.34Sec. 15. GAMBLING CONTROL$3,959,000$3,959,000

11.1These appropriations are from the lawful 11.2gambling regulation account in the special 11.3revenue fund.

11.4Sec. 16. RACING COMMISSION$899,000$899,000

11.5These appropriations are from the racing 11.6and card playing regulation accounts in the 11.7special revenue fund.

11.8Sec. 17. STATE LOTTERY

11.9Notwithstanding Minnesota Statutes, section 11.10349A.10, subdivision 3, the operating budget 11.11must not exceed $30,500,000 in fiscal year 11.122014 and $30,500,000 in fiscal year 2015.

11.13Sec. 18. AMATEUR SPORTS COMMISSION$266,000$266,000

11.1411.15Sec. 19. COUNCIL ON BLACK MINNESOTANS$392,000$392,000

11.1611.17Sec. 20. COUNCIL ON ASIAN-PACIFIC MINNESOTANS$354,000$354,000

11.1811.19Sec. 21. COUNCIL ON AFFAIRS OF CHICANO/LATINO PEOPLE$375,000$375,000

11.20Sec. 22. INDIAN AFFAIRS COUNCIL$562,000$562,000

11.2111.22Sec. 23. MINNESOTA HISTORICAL SOCIETY

11.23Subdivision 1.Total Appropriation$21,783,000$21,649,000

11.24The amounts that may be spent for each 11.25purpose are specified in the following 11.26subdivisions.

11.27Subd. 2.Operations and Programs21,335,00021,335,000

11.28Notwithstanding Minnesota Statutes, section 11.29138.668, the Minnesota Historical Society 12.1may not charge a fee for its general tours at 12.2the Capitol, but may charge fees for special 12.3programs other than general tours.

12.4Subd. 3.Fiscal Agent

12.5(a) Minnesota International Center39,00039,000

12.6(b) Minnesota Air National Guard Museum34,000-0-

12.7(c) Minnesota Military Museum160,00060,000

12.8Of this amount, $60,000 each year is for an 12.9archivist staff position. The base for fiscal 12.10year 2016 is $100,000.

12.11(d) Farmamerica115,000115,000

12.12(e) Hockey Hall of Fame100,000100,000

12.13Balances Forward. Any unencumbered 12.14balance remaining in this subdivision the first 12.15year does not cancel but is available for the 12.16second year of the biennium.

12.17Sec. 24. BOARD OF THE ARTS

12.18Subdivision 1.Total Appropriation$7,514,000$7,514,000

12.19The amounts that may be spent for each 12.20purpose are specified in the following 12.21subdivisions.

12.22Subd. 2.Operations and Services575,000575,000

12.23Subd. 3.Grants Program4,800,0004,800,000

12.24Subd. 4.Regional Arts Councils2,139,0002,139,000

12.25Unencumbered Balance Available. Any 12.26unencumbered balance remaining in this 12.27section the first year does not cancel, but is 12.28available for the second year of the biennium.12.29Projects located in Minnesota; travel 12.30restriction. Money appropriated in this 12.31section and distributed as grants may only 13.1be spent on projects located in Minnesota. 13.2A recipient of a grant funded by an 13.3appropriation in this section must not use 13.4more than ten percent of the total grant for 13.5costs related to travel outside the state of 13.6Minnesota.

13.713.8Sec. 25. MINNESOTA HUMANITIES CENTER$291,000$251,000

13.9$40,000 the first year is for a grant to 13.10Everybody Wins!-Minnesota, a Minnesota 13.11501(c)(3) corporation, to operate a reading 13.12program for Minnesota children.

13.1313.14Sec. 26. SCIENCE MUSEUM OF MINNESOTA$1,079,000$1,079,000

13.1513.16Sec. 27. GENERAL CONTINGENT ACCOUNTS$1,000,000$500,000

13.17Appropriations by Fund13.182014201513.19General500,000-0-13.2013.21State Government Special Revenue400,000400,00013.2213.23Workers' Compensation100,000100,000

13.24(a) The appropriations in this section 13.25may only be spent with the approval of 13.26the governor after consultation with the 13.27Legislative Advisory Commission pursuant 13.28to Minnesota Statutes, section 3.30.13.29(b) If an appropriation in this section for 13.30either year is insufficient, the appropriation 13.31for the other year is available for it.13.32(c) If a contingent account appropriation 13.33is made in one fiscal year, it should be 13.34considered a biennial appropriation.

14.1Sec. 28. TORT CLAIMS$161,000$161,000

14.2These appropriations are to be spent by the 14.3commissioner of management and budget 14.4according to Minnesota Statutes, section 14.53.736, subdivision 7. If the appropriation for 14.6either year is insufficient, the appropriation 14.7for the other year is available for it.

14.814.9Sec. 29. MINNESOTA STATE RETIREMENT SYSTEM

14.10Subdivision 1.Total Appropriation$3,891,000$3,964,000

14.11The amounts that may be spent for each 14.12purpose are specified in the following 14.13subdivisions.

14.14Subd. 2.Legislators3,406,0003,475,000

14.15Under Minnesota Statutes, sections 3A.03, 14.16subdivision 2; 3A.04, subdivisions 3 and 4; 14.17and 3A.115.

14.18Subd. 3. Constitutional Officers485,000489,000

14.19Under Minnesota Statutes, section 352C.001, 14.20if an appropriation in this section for either 14.21year is insufficient, the appropriation for the 14.22other year is available for it.

14.2314.24Sec. 30. MINNEAPOLIS EMPLOYEES RETIREMENT FUND DIVISION ACCOUNT$24,000,000$24,000,000

14.25These amounts are estimated to be needed 14.26under Minnesota Statutes, section 353.505.

14.2714.28Sec. 31. TEACHERS RETIREMENT ASSOCIATION$15,454,000$15,454,000

14.29The amounts estimated to be needed are as 14.30follows:14.31Special Direct State Aid. $12,954,000 the 14.32first year and $12,954,000 the second year 15.1are for special direct state aid authorized 15.2under Minnesota Statutes, section 354A.12, 15.3subdivisions 3a and 3c.15.4Special Direct State Matching Aid.15.5 $2,500,000 the first year and $2,500,000 15.6the second year are for special direct state 15.7matching aid authorized under Minnesota 15.8Statutes, section 354.435.

15.915.10Sec. 32. ST. PAUL TEACHERS RETIREMENT FUND$2,827,000$2,827,000

15.11The amounts estimated to be needed for 15.12special direct state aid to first class city 15.13teachers retirement funds authorized under 15.14Minnesota Statutes, section 354A.12, 15.15subdivisions 3a and 3c.

15.1615.17Sec. 33. DULUTH TEACHERS RETIREMENT FUND$346,000$346,000

15.18The amounts estimated to be needed for 15.19special direct state aid to first class city 15.20teachers retirement funds authorized under 15.21Minnesota Statutes, section 354A.12, 15.22subdivisions 3a and 3c.

15.23Sec. 34. MILITARY AFFAIRS

15.24Subdivision 1.Total Appropriation$19,368,000$19,368,000

15.25The amounts that may be spent for each 15.26purpose are specified in the following 15.27subdivisions.

15.28Subd. 2.Maintenance of Training Facilities6,661,0006,661,000

15.29Subd. 3.General Support2,359,0002,359,000

15.30Subd. 4.Enlistment Incentives10,348,00010,348,000

15.31If appropriations for either year of the 15.32biennium are insufficient, the appropriation 16.1from the other year is available. The 16.2appropriations for enlistment incentives are 16.3available until expended.

16.4Sec. 35. VETERANS AFFAIRS

16.5Subdivision 1.Total Appropriation$63,508,000$62,753,000

16.6The amounts that may be spent for each 16.7purpose are specified in the following 16.8subdivisions.

16.9Subd. 2.Veterans Services16,051,00016,240,000

16.10Veterans Service Organizations. $353,000 16.11each year is for grants to the following 16.12congressionally chartered veterans service 16.13organizations, as designated by the 16.14commissioner: Disabled American Veterans, 16.15Military Order of the Purple Heart, the 16.16American Legion, Veterans of Foreign Wars, 16.17Vietnam Veterans of America, AMVETS, 16.18and Paralyzed Veterans of America. This 16.19funding must be allocated in direct proportion 16.20to the funding currently being provided by 16.21the commissioner to these organizations.16.22Minnesota Assistance Council for 16.23Veterans. $750,000 each year is for a grant 16.24to the Minnesota Assistance Council for 16.25Veterans to provide assistance throughout 16.26Minnesota to veterans and their families who 16.27are homeless or in danger of homelessness, 16.28including assistance with the following:16.29(1) utilities;16.30(2) employment; and16.31(3) legal issues.16.32The assistance authorized under this 16.33paragraph must be made only to veterans who 17.1have resided in Minnesota for 30 days prior 17.2to application for assistance and according 17.3to other guidelines established by the 17.4commissioner. In order to avoid duplication 17.5of services, the commissioner must ensure 17.6that this assistance is coordinated with all 17.7other available programs for veterans.17.8IT Upgrades. $618,000 in fiscal year 2014 17.9and $382,000 in fiscal year 2015 are to 17.10improve and modernize the department's 17.11information technology systems. These 17.12funds shall be transferred to the Office of 17.13Enterprise Technology. This is a onetime 17.14transfer and is available until spent.17.15Veterans Cemetery in Fillmore County.17.16 $425,000 in fiscal year 2015 is for operation 17.17of the new veterans cemetery in Fillmore 17.18County. This amount is added to the 17.19program's base funding.17.20Honor Guards. $200,000 each year is 17.21for compensation for honor guards at 17.22the funerals of veterans under Minnesota 17.23Statutes, section 197.231. This amount is 17.24added to the program's base funding.17.25Minnesota GI Bill. $200,000 each year is 17.26for the costs of administering the Minnesota 17.27GI Bill postsecondary educational benefits, 17.28on-the-job training, and apprenticeship 17.29program under Minnesota Statutes, section 17.30197.791. Of this amount, $100,000 is for 17.31transfer to the Office of Higher Education.17.32Gold Star Program. $100,000 each year 17.33is for administering the Gold Star Program 17.34for surviving family members of deceased 18.1veterans. This amount is added to the 18.2program's base funding.18.3County Veterans Service Office.18.4 $1,100,000 each year is for funding the 18.5County Veterans Service Office grant 18.6program under Minnesota Statutes, section 18.7197.608.18.8Veterans Paramedic Apprenticeship 18.9Program. All unspent funds, estimated to 18.10be $110,000, from the Veterans Paramedic 18.11Apprenticeship Program, from the onetime 18.12appropriation under Laws 2009, chapter 79, 18.13article 13, section 7, are canceled to the 18.14general fund on July 1, 2013.

18.15Subd. 3.Veterans Homes47,457,00046,513,000

18.16Veterans Homes Special Revenue Account.18.17 The general fund appropriations made to the 18.18department may be transferred to a veterans 18.19homes special revenue account in the special 18.20revenue fund in the same manner as other 18.21receipts are deposited according to Minnesota 18.22Statutes, section 198.34, and are appropriated 18.23to the department for the operation of 18.24veterans homes facilities and programs.18.25IT Upgrades. $2,472,000 in fiscal year 2014 18.26and $1,528,000 in fiscal year 2015 are to 18.27improve and modernize the department's 18.28information technology systems. These 18.29funds shall be transferred to the Office of 18.30Enterprise Technology. This is a onetime 18.31transfer and is available until spent.18.32Maximize Federal Reimbursements.18.33 The department will seek opportunities 18.34to maximize federal reimbursements of 19.1Medicare-eligible expenses and will provide 19.2annual reports to the commissioner of 19.3management and budget on the federal 19.4Medicare reimbursements received. 19.5Contingent upon future federal Medicare 19.6receipts, reductions to the homes' general 19.7fund appropriation may be made.19.8ARTICLE 219.9MINNESOTA SUNSET ACT19.10    Section 1. Minnesota Statutes 2012, section 3.885, is amended by adding a subdivision 19.11to read:19.12    Subd. 11.Review of advisory groups.(a) By September 1 of each odd-numbered 19.13year, the commission shall compile a list of executive branch advisory groups created in 19.14statute. The commission may develop a schedule for review of advisory groups, or may 19.15select particular groups for review. By December 31 of each odd-numbered year, the 19.16commission may make recommendations on the continuing need for certain advisory 19.17groups, and on any changes in laws governing a group that are needed to improve the 19.18group's efficiency and effectiveness.19.19(b) In conducting reviews of executive branch advisory groups, the commission 19.20shall consider:19.21(1) the mission of each group, and the extent to which the mission has been satisfied;19.22(2) the extent to which each advisory group is effective in allowing persons 19.23interested in the program or activity for which the group provides advice to have input 19.24into the operations of the state agency implementing the program or activity;19.25(3) the extent to which the existence of the advisory group provides state agencies 19.26with an efficient and effective means of obtaining expert advice and opinions;19.27(4) whether there are more efficient and effective methods of accomplishing the 19.28mission  of the advisory group; and19.29(5) whether the work of the advisory group overlaps or duplicates the work of 19.30other groups.19.31    Sec. 2. Minnesota Statutes 2012, section 254A.035, subdivision 2, is amended to read:19.32    Subd. 2. Membership terms, compensation, removal and expiration. The 19.33membership of this council shall be composed of 17 persons who are American Indians 19.34and who are appointed by the commissioner. The commissioner shall appoint one 20.1representative from each of the following groups: Red Lake Band of Chippewa Indians; 20.2Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota 20.3Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, 20.4Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 20.5Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux 20.6Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux 20.7Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; 20.8and two representatives from the Minneapolis Urban Indian Community and two from the 20.9St. Paul Urban Indian Community. The terms, compensation, and removal of American 20.10Indian Advisory Council members shall be as provided in section 
         15.059. The council 20.11expires June 30, 2014, or in accordance with section 3D.21, whichever is later.20.12    Sec. 3. Minnesota Statutes 2012, section 254A.04, is amended to read:20.13254A.04 CITIZENS ADVISORY COUNCIL.20.14There is hereby created an Alcohol and Other Drug Abuse Advisory Council to 20.15advise the Department of Human Services concerning the problems of alcohol and 20.16other drug dependency and abuse, composed of ten members. Five members shall be 20.17individuals whose interests or training are in the field of alcohol dependency and abuse; 20.18and five members whose interests or training are in the field of dependency and abuse of 20.19drugs other than alcohol. The terms, compensation and removal of members shall be as 20.20provided in section 
         15.059. The council expires June 30, 2014, or in accordance with 20.21section 3D.21, whichever is later. The commissioner of human services shall appoint 20.22members whose terms end in even-numbered years. The commissioner of health shall 20.23appoint members whose terms end in odd-numbered years.20.24    Sec. 4. Minnesota Statutes 2012, section 256B.093, subdivision 1, is amended to read:20.25    Subdivision 1. State traumatic brain injury program. The commissioner of 20.26human services shall:20.27    (1) maintain a statewide traumatic brain injury program;20.28    (2) supervise and coordinate services and policies for persons with traumatic brain 20.29injuries;20.30    (3) contract with qualified agencies or employ staff to provide statewide 20.31administrative case management and consultation;20.32    (4) maintain an advisory committee to provide recommendations in reports to the 20.33commissioner regarding program and service needs of persons with brain injuries;21.1    (5) investigate the need for the development of rules or statutes for the brain injury 21.2home and community-based services waiver;21.3    (6) investigate present and potential models of service coordination which can be 21.4delivered at the local level; and21.5    (7) the advisory committee required by clause (4) must consist of no fewer than ten 21.6members and no more than 30 members. The commissioner shall appoint all advisory 21.7committee members to one- or two-year terms and appoint one member as chair. 21.8Notwithstanding section 
         15.059, subdivision 5, the advisory committee does not terminate 21.9until June 30, 2014, or in accordance with section 3D.21, whichever is later.21.10    Sec. 5. Minnesota Statutes 2012, section 260.835, subdivision 2, is amended to read:21.11    Subd. 2. Expiration. Notwithstanding section 
         15.059, subdivision 5, the American 21.12Indian Child Welfare Advisory Council expires June 30, 2014, or in accordance with 21.13section 3D.21, whichever is later.21.14    Sec. 6. Laws 2012, chapter 278, article 1, section 5, is amended to read:21.15    Sec. 5. COUNCIL ON BLACK MINNESOTANS.21.16The Office of the Legislative Auditor should conduct a financial audit of the 21.17Council on Black Minnesotans by December 1, 2013. In its next report to the Sunset 21.18Advisory Commission governor and legislature under Minnesota Statutes, section 3.9225, 21.19subdivision 7, the Council on Black Minnesotans must respond to any issues raised in this 21.20audit and to issues raised in previous audits.21.21    Sec. 7. Laws 2012, chapter 278, article 2, section 27, is amended to read:21.22    Sec. 27. HEALTH-RELATED LICENSING BOARDS REPORTING 21.23OBLIGATIONS.21.24    (a) By January 15, 2013, the health-related boards and the commissioner of health, 21.25as the regulator for occupational therapy practitioners, speech-language pathologists, 21.26audiologists, and hearing instrument dispensers, shall jointly study and submit draft 21.27legislation to the Sunset Commission and the chairs and ranking minority members of 21.28the legislative committees with jurisdiction over health and human services developing 21.29consistent reporting requirements that require institutions, professional societies, other 21.30licensed professionals, courts, insurers, and other entities to report conduct constituting 21.31grounds for disciplinary action to the respective regulatory entity. The study and draft 21.32legislation shall include a self-reporting requirement that requires the licensed individual 21.33to report to the respective regulatory entity any action that would require a report to be 22.1filed by another specified entity. The study and draft legislation shall also include penalties 22.2that may be imposed for failure to report.22.3    (b) Health-related boards with existing statutory reporting obligations shall 22.4participate to ensure that the existing reporting requirements are consistent with the 22.5recommended requirements and draft legislation.22.6    Sec. 8. Laws 2012, chapter 278, article 2, section 34, is amended to read:22.7    Sec. 34. BOARD OF MEDICAL PRACTICE REVIEW.22.8    The legislative auditor is requested to conduct a special investigation of the 22.9Minnesota Board of Medical Practice and its implementation of the Medical Practice 22.10Act. The legislative auditor is requested to submit the results of the investigation to the 22.11Legislative Audit Commission, the Sunset Advisory Commission, and the chairs and 22.12ranking minority members of the senate and house of representatives policy committees 22.13having jurisdiction over the board by January 1, 2013.22.14    Sec. 9. REVISOR'S INSTRUCTION.22.15The revisor of statutes shall delete all references to "the Sunset Advisory 22.16Commission" wherever they appear in Minnesota Statutes, and shall make other changes 22.17as necessary in Minnesota Statutes as a result of the enactment of this article.22.18    Sec. 10.  REPEALER.22.19(a)  Minnesota Statutes 2012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 22.203D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 22.213D.17; 3D.18; 3D.19; 3D.20; and 3D.21, subdivisions 2, 3, 4, 5, 6, 7, and 8, are repealed.22.22(b)  Laws 2012, chapter 278, article 1, section 6, is  repealed.22.23    Sec. 11. EFFECTIVE DATE.22.24Sections 1 to 10 are effective the day following final enactment.22.25ARTICLE 322.26STATE GOVERNMENT OPERATIONS22.27    Section 1. Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:22.28    Subd. 2. Members; duties.(a) The majority leader of the senate or a designee, the 22.29chair of the senate Committee on Finance, and the chair of the senate Division of Finance 22.30responsible for overseeing the items being considered by the commission, the speaker of 22.31the house or a designee, the chair of the house of representatives Committee on Ways and 23.1Means, and the chair of the appropriate finance committee, or division of the house of 23.2representatives committee responsible for overseeing the items being considered by the 23.3commissioner, constitute the Legislative Advisory Commission. The division chair of the 23.4Finance Committee in the senate and the division chair of the appropriate finance committee 23.5or division in the house of representatives shall rotate according to the items being 23.6considered by the commission. If any of the members elect not to serve on the commission, 23.7the house of which they are members, if in session, shall select some other member for 23.8the vacancy. If the legislature is not in session, vacancies in the house of representatives 23.9membership of the commission shall be filled by the last speaker of the house or, if the 23.10speaker is not available, by the last chair of the house of representatives Rules Committee, 23.11and by the last senate Committee on Committees or other appointing authority designated 23.12by the senate rules in case of a senate vacancy. The commissioner of management and 23.13budget shall be secretary of the commission and keep a permanent record and minutes of 23.14its proceedings, which are public records. The commissioner of management and budget 23.15shall transmit, under section 
         3.195, a report to the next legislature of all actions of the 23.16commission. Members shall receive traveling and subsistence expenses incurred attending 23.17meetings of the commission. The commission shall meet from time to time upon the call of 23.18the governor or upon the call of the secretary at the request of two or more of its members. 23.19A recommendation of the commission must be made at a meeting of the commission 23.20unless a written recommendation is signed by all the members entitled to vote on the item.23.21(b) The chair alternates between a member of the senate and a member of the house 23.22of representatives in January of each odd-numbered year.23.23    Sec. 2. Minnesota Statutes 2012, section 3.303, is amended by adding a subdivision to 23.24read:23.25    Subd. 11.Acceptance of grants and gifts.The commission may accept gifts 23.26and grants for purposes related to the duties of the commission. Money received by the 23.27commission from gifts and grants is appropriated to the commission for purposes specified 23.28in the gift or grant.23.29    Sec. 3. Minnesota Statutes 2012, section 3.85, subdivision 8, is amended to read:23.30    Subd. 8. Expenses, reimbursement. The members of the commission and its 23.31assistants staff shall be reimbursed for all expenses actually and necessarily incurred in 23.32the performance of their duties. Reimbursement for expenses incurred shall be made 23.33under the rules governing state employees in accordance with policies adopted by the 23.34Legislative Coordinating Commission.24.1    Sec. 4. Minnesota Statutes 2012, section 3.85, subdivision 9, is amended to read:24.2    Subd. 9. Expenses and reports. Expenses of the commission shall be approved 24.3by the chair or another member as the rules of the commission provide. The expenses 24.4shall then be paid like other state expenses. A general summary or statement of expenses 24.5incurred by the commission and paid shall be made to the legislature by November 15 of 24.6each even-numbered year.24.7    Sec. 5. Minnesota Statutes 2012, section 3.971, subdivision 6, is amended to read:24.8    Subd. 6. Financial audits. The legislative auditor shall audit the financial 24.9statements of the state of Minnesota required by section 
         16A.50 and, as resources permit, 24.10shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 24.11agencies, departments, boards, commissions, offices, courts, and other state organizations 24.12subject to audit by the legislative auditor, including, but not limited to, the State 24.13Agricultural Society, Agricultural Utilization Research Institute, Enterprise Minnesota, 24.14Inc., Minnesota Historical Society, Labor Interpretive Center, Minnesota Partnership 24.15for Action Against Tobacco, Metropolitan Sports Facilities Commission ClearWay 24.16Minnesota, Minnesota Sports Facilities Authority, Metropolitan Airports Commission, and 24.17Metropolitan Mosquito Control District. Financial audits must be conducted according to 24.18generally accepted government auditing standards. The legislative auditor shall see that 24.19all provisions of law respecting the appropriate and economic use of public funds and 24.20other public resources are complied with and may, as part of a financial audit or separately, 24.21investigate allegations of noncompliance.24.22EFFECTIVE DATE.This section is effective the day following final enactment.24.23    Sec. 6. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 24.24read:24.25    Subd. 6a.Data security audits.The legislative auditor shall audit, as resources 24.26permit, information and data systems supported with public funds and operated by an 24.27organization listed in subdivision 6. The audits shall include an assessment of controls 24.28designed to protect government data, particularly government data classified as not 24.29public by chapter 13, from unauthorized access and use. The audits shall also include an 24.30assessment of organizations' compliance with other applicable legal requirements related 24.31to the operation of information and data systems and proper classification and protection 24.32of the data contained in the systems.24.33EFFECTIVE DATE.This section is effective the day following final enactment.25.1    Sec. 7. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 25.2read:25.3    Subd. 9.Obligation to notify the legislative auditor.The chief executive, 25.4financial, or information officers of an organization subject to audit under this section, 25.5must promptly notify the legislative auditor when the officer obtains information 25.6indicating that public money or other public resources may have been used for an unlawful 25.7purpose, or when the officer obtains information indicating that government data classified 25.8by chapter 13 as not public may have been accessed or used unlawfully. As necessary, 25.9the legislative auditor shall coordinate an investigation of the allegation with appropriate 25.10law enforcement officials.25.11EFFECTIVE DATE.This section is effective the day following final enactment.25.12    Sec. 8. [5.38] AUTHORITY TO ACCEPT FUNDS.25.13The secretary of state may enter into agreements with a local governmental unit to 25.14provide a technological service or project to enhance the state's election system. The 25.15secretary of state and the local governmental unit shall agree to the amount of consideration 25.16to be paid under the agreement. In addition, the secretary of state may accept federal funds 25.17for election purposes. If the secretary of state accepts federal funds and the terms of the 25.18grant do not require the state to maintain its effort, section 3.3005 does not apply. If the 25.19secretary of state accepts federal funds and the terms of the grant do require the state to 25.20maintain its effort, section 3.3005 applies. The funds accepted under this section must be 25.21deposited in accounts in the special revenue fund and are appropriated to the secretary of 25.22state for the uses authorized by this section. The secretary of state shall report by January 25.2315 each year to the chair and ranking minority members of the finance committees of the 25.24house of representatives and the senate with jurisdiction over the secretary of state the total 25.25amounts received in the preceding calendar year, the sources of those funds, and the uses 25.26to which those funds were or will be put. For purposes of this section, "local governmental 25.27unit" means a county, home rule charter or statutory city, town, or school district.25.28EFFECTIVE DATE.This section is effective the day following final enactment.25.29    Sec. 9. [5B.12] AUTHORITY TO ACCEPT FUNDS.25.30Notwithstanding sections 16A.013 to 16A.016, the secretary of state may accept 25.31funds contributed by individuals and may apply for grants from charitable foundations, to 25.32be used for the address confidentiality program established in section 5B.03. In addition, 25.33the secretary of state may apply for grants from the federal government for purposes of the 26.1address confidentiality program. If the secretary of state accepts federal funds and the terms 26.2of the grant do not require the state to maintain its effort, section 3.3005 does not apply. If 26.3the secretary of state accepts federal funds and the terms of the grant do require the state to 26.4maintain its effort, section 3.3005 applies. The funds accepted under this section must be 26.5deposited in accounts in the special revenue fund and are appropriated to the secretary of 26.6state for use in the address confidentiality program. The secretary of state shall report by 26.7January 15 each year to the chair and ranking minority members of the finance committees 26.8of the house of representatives and the senate with jurisdiction over the secretary of state the 26.9total amounts received in the preceding calendar year, the sources of those funds, and the 26.10uses to which those funds were or will be put. Any contributions from program participants 26.11must be aggregated, and the names of program participants must not be reported.26.12EFFECTIVE DATE.This section is effective the day following final enactment.26.13    Sec. 10. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.26.14(a) The state auditor may charge a onetime user fee to cities, towns, and other 26.15government entities for the development, maintenance, and distribution of the small city 26.16and town accounting system software. The amount of this fee shall be set by the state 26.17auditor in consultation with the Minnesota Association of Townships, the League of 26.18Minnesota Cities, and the Minnesota Association of Small Cities.26.19(b) A city and town accounting systems (CTAS) account is established in the special 26.20revenue fund.26.21(c) Amounts received under paragraph (a) shall be credited to the CTAS account in 26.22the special revenue fund and are appropriated to the state auditor for all costs associated 26.23with the development, maintenance, and distribution of the small city and town accounting 26.24system software. If at any time the small city and town accounting system software ceases 26.25to be offered by the state auditor, any amount remaining in the CTAS account shall be 26.26equitably refunded to users. The amount of the refund shall be set by the state auditor 26.27in consultation with the Minnesota Association of Townships, the League of Minnesota 26.28Cities, and the Minnesota Association of Small Cities, and the account shall be closed.26.29    Sec. 11. Minnesota Statutes 2012, section 6.48, is amended to read:26.306.48 EXAMINATION OF COUNTIES; COST, FEES.26.31All the powers and duties conferred and imposed upon the state auditor shall be 26.32exercised and performed by the state auditor in respect to the offices, institutions, public 26.33property, and improvements of several counties of the state. At least once in each year, 27.1if funds and personnel permit, the state auditor may visit, without previous notice, each 27.2county and make a thorough examination of all accounts and records relating to the 27.3receipt and disbursement of the public funds and the custody of the public funds and 27.4other property. If the audit is performed by a private certified public accountant, the state 27.5auditor may require additional information from the private certified public accountant as 27.6the state auditor deems in the public interest. The state auditor may accept the audit or 27.7make additional examinations as the state auditor deems to be in the public interest. The 27.8state auditor shall prescribe and install systems of accounts and financial reports that shall 27.9be uniform, so far as practicable, for the same class of offices. A copy of the report of 27.10such examination shall be filed and be subject to public inspection in the office of the state 27.11auditor and another copy in the office of the auditor of the county thus examined. The state 27.12auditor may accept the records and audit, or any part thereof, of the Department of Human 27.13Services in lieu of examination of the county social welfare funds, if such audit has been 27.14made within any period covered by the state auditor's audit of the other records of the 27.15county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance 27.16in any office of such county, such report shall be filed with the county attorney of the 27.17county, and the county attorney shall institute such civil and criminal proceedings as the 27.18law and the protection of the public interests shall require.27.19The county receiving any examination shall pay to the state general fund, 27.20notwithstanding the provisions of section 16A.125, state auditor enterprise fund the total 27.21cost and expenses of such examinations, including the salaries paid to the examiners 27.22while actually engaged in making such examination. The state auditor on deeming it 27.23advisable may bill counties, having a population of 200,000 or over, monthly periodically27.24 for services rendered and the officials responsible for approving and paying claims shall 27.25cause said bill to be promptly paid. The general state auditor enterprise fund shall be 27.26credited with all collections made for any such examinations.27.27    Sec. 12. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:27.28    Subd. 2. Billings by state auditor. Upon the examination of the books, records, 27.29accounts, and affairs of any political subdivision, as provided by law, such political 27.30subdivision shall be liable to the state for the total cost and expenses of such examination, 27.31including the salaries paid to the examiners while actually engaged in making such 27.32examination. The state auditor may bill such political subdivision monthly periodically27.33 for service rendered and the officials responsible for approving and paying claims are 27.34authorized to pay said bill promptly. Said payments shall be without prejudice to any 27.35defense against said claims that may exist or be asserted. The general state auditor 28.1enterprise fund shall be credited with all collections made for any such examinations, 28.2including interest payments made pursuant to subdivision 3.28.3    Sec. 13. [6.581] STATE AUDITOR ENTERPRISE FUND.28.4    Subdivision 1.State auditor enterprise fund. A state auditor enterprise fund 28.5is established in the state treasury. All amounts received for the costs and expenses of 28.6examinations performed under this chapter shall be credited to the fund. Amounts credited 28.7to the fund are annually appropriated to the state auditor to pay the costs and expenses 28.8related to the examinations performed, including, but not limited to, salaries, office 28.9overhead, equipment, authorized contracts, and other expenses.28.10    Subd. 2.Contract with private parties; equipment acquisition.When full-time 28.11personnel are not available, the state auditor may contract with a private entity for 28.12accounting and other technical services. Notwithstanding any law to the contrary, the 28.13acquisition of equipment may include duplicating equipment to be used in producing the 28.14reports issued by the Office of the State Auditor.28.15    Subd. 3.Schedule of charges.The state auditor may adjust the schedule of charges 28.16for the examinations performed so that the charges are sufficient to cover all costs of the 28.17examinations performed and that the aggregate charges collected are sufficient to pay all 28.18salaries and other expenses, including the charges for the use of the equipment used in 28.19connection with the reimbursable examinations performed, and the cost of contracting for 28.20accounting and other technical services. The schedule of charges shall be based on an 28.21estimate of the cost of performing reimbursable examinations including, but not limited 28.22to, salaries, office overhead, equipment, authorized contracts, and other expenses. The 28.23state auditor may allocate a proportionate part of the total costs to an hourly or daily 28.24charge for each person or class of persons engaged in the performance of an examination. 28.25The schedule of charges shall reflect an equitable charge for the expenses incurred in the 28.26performance of any given examination. The state auditor shall review and adjust the 28.27schedule of charges for the examinations performed at least annually. All schedules of 28.28charges must be approved by the commissioner of management and budget before the 28.29charges are adopted to ensure that the amount collected is sufficient to pay all the costs 28.30connected with the examinations performed during the fiscal year.28.31    Subd. 4.Reports to legislature.At least 30 days before implementing increased 28.32charges for examinations, the state auditor must report the proposed increases to the 28.33chairs and ranking minority members of the committees in the house of representatives 28.34and the senate with jurisdiction over the budget of the state auditor. By January 15 of 28.35each odd-numbered year, the state auditor must report to the chairs and ranking minority 29.1members of the legislative committees and divisions with primary jurisdiction over 29.2the budget of the state auditor, a summary of state auditor enterprise fund anticipated 29.3revenues, and expenditures for the biennium ending June 30 of that year. The report 29.4must also include for the biennium the number of full-time equivalents paid by the fund, 29.5any audit rate changes stated as a percentage, the number of audit reports issued, and 29.6the number of counties audited.29.7    Sec. 14. Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:29.8    Subd. 3. Business as vendor. (a) Data submitted by a business to a government 29.9entity in response to a request for bids as defined in section 
         16C.02, subdivision 11, are 29.10private or nonpublic until the bids are opened. Once the bids are opened, the time and date 29.11specified in the solicitation that bids are due, at which time the name of the bidder and the 29.12dollar amount specified in the response are read and become public. All other data in a 29.13bidder's response to a bid are private or nonpublic data until completion of the selection 29.14process. For purposes of this section, "completion of the selection process" means that 29.15the government entity has completed its evaluation and has ranked the responses. After a 29.16government entity has completed the selection process, all remaining data submitted by 29.17all bidders are public with the exception of trade secret data as defined and classified in 29.18section 
         13.37. A statement by a bidder that submitted data are copyrighted or otherwise 29.19protected does not prevent public access to the data contained in the bid.29.20If all responses to a request for bids are rejected prior to completion of the selection 29.21process, all data, other than that made public at the bid opening the name of the bidder 29.22and the dollar amount specified in the response, remain private or nonpublic until a 29.23resolicitation of bids results in completion of the selection process or a determination is 29.24made to abandon the purchase. If the rejection occurs after the completion of the selection 29.25process, the data remain public. If a resolicitation of bids does not occur within one year 29.26of the bid opening date, the remaining data become public.29.27(b) Data submitted by a business to a government entity in response to a request 29.28for proposal, as defined in section 
         16C.02, subdivision 12, are private or nonpublic until 29.29the responses are opened. Once the responses are opened, the time and date specified in 29.30the solicitation that proposals are due, at which time the name of the responder is read 29.31and becomes public. All other data in a responder's response to a request for proposal are 29.32private or nonpublic data until completion of the evaluation process. For purposes of this 29.33section, "completion of the evaluation process" means that the government entity has 29.34completed negotiating the contract with the selected vendor. After a government entity 29.35has completed the evaluation process, all remaining data submitted by all responders are 30.1public with the exception of trade secret data as defined and classified in section 
         13.37. A 30.2statement by a responder that submitted data are copyrighted or otherwise protected does 30.3not prevent public access to the data contained in the response.30.4If all responses to a request for proposal are rejected prior to completion of the 30.5evaluation process, all data, other than that made public at the response opening,the 30.6names of the responders, remain private or nonpublic until a resolicitation of the requests 30.7for proposal results in completion of the evaluation process or a determination is made 30.8to abandon the purchase. If the rejection occurs after the completion of the evaluation 30.9process, the data remain public. If a resolicitation of proposals does not occur within one 30.10year of the proposal opening date, the remaining data become public.30.11    Sec. 15. Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:30.12    Subd. 1c. Performance measures for change items. For each change item in the 30.13budget proposal requesting new or increased funding, the budget document must present 30.14proposed performance measures that can be used to determine if the new or increased 30.15funding is accomplishing its goals. To the extent possible, each budget change item 30.16must identify relevant Minnesota Milestones and other statewide goals and indicators 30.17related to the proposed initiative. The commissioner must report to the Subcommittee on 30.18Government Accountability established under section 3.885, subdivision 10, regarding the 30.19format to be used for the presentation and selection of Minnesota Milestones and other 30.20statewide goals and indicators.30.21    Sec. 16. Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:30.22    Subd. 13. Resident vendor. "Resident vendor" means a person, firm, or corporation 30.23that:30.24(1) is authorized to conduct business in the state of Minnesota on the date a 30.25solicitation for a contract is first advertised or announced. It includes a foreign corporation 30.26duly authorized to engage in business in Minnesota.;30.27(2) has paid unemployment taxes or income taxes in this state during the 12 calendar 30.28months immediately preceding submission of the bid or proposal for which any preference 30.29is sought;30.30(3) has a business address in the state; and30.31(4) has affirmatively claimed that status in the bid or proposal submission.30.32    Sec. 17. Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:31.1    Subd. 2. Solicitation process. (a) A formal solicitation must be used to acquire all 31.2goods, service contracts, and utilities estimated at or more than $50,000, or in the case of 31.3a Department of Transportation solicitation, at or more than $100,000, unless otherwise 31.4provided for. All formal responses must be sealed when they are received and must be 31.5opened in public at the hour stated in the solicitation made publicly available as required 31.6by section 13.591. Formal responses must be authenticated by the responder in a manner 31.7specified by the commissioner.31.8(b) An informal solicitation may be used to acquire all goods, service contracts, 31.9and utilities that are estimated at less than $50,000, or in the case of a Department of 31.10Transportation solicitation, at or less than $100,000. The number of vendors required to 31.11receive solicitations may be determined by the commissioner. Informal responses must be 31.12authenticated by the responder in a manner specified by the commissioner.31.13    Sec. 18. Minnesota Statutes 2012, section 16C.09, is amended to read:31.1416C.09 PROCEDURE FOR SERVICE CONTRACTS.31.15(a) Before entering into or approving a service contract valued in excess of $5,000, 31.16the commissioner must determine, at least, that:31.17(1) no current state employee is able and available to perform the services called 31.18for by the contract;31.19(2) the work to be performed under the contract is necessary to the agency's 31.20achievement of its statutory responsibilities and there is statutory authority to enter into 31.21the contract;31.22(3) the contract will not establish an employment relationship between the state or 31.23the agency and any persons performing under the contract;31.24(4) the contractor and agents are not employees of the state;31.25(5) the contracting agency has specified a satisfactory method of evaluating and 31.26using the results of the work to be performed; and31.27(6) the combined contract and amendments will not exceed five years without 31.28specific, written approval by the commissioner according to established policy, procedures, 31.29and standards, or unless otherwise provided for by law. The term of the original contract 31.30must not exceed two years, unless the commissioner determines that a longer duration is 31.31in the best interest of the state.31.32(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:31.33(1) are already doing the work in question; or31.34(2) are on layoff status in classes that can do the work in question.32.1An employee is not available if the employee is doing other work, is retired, or has decided 32.2not to do the work in question.32.3(c) This section does not apply to an agency's use of inmates pursuant to sections 32.4241.20
          to 
         241.23 or to an agency's use of persons required by a court to provide:32.5(1) community service; or32.6(2) conservation or maintenance services on lands under the jurisdiction and control 32.7of the state.32.8    Sec. 19. Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:32.9    Subd. 6. Expenditures under specified amounts. The solicitation process 32.10described in this chapter is not required for:32.11(1) acquisition of goods or services, other than professional or technical services, 32.12in an amount of $2,500 $5,000 or less; or32.13(2) acquisition of professional or technical services in an amount of $5,000 or less, 32.14provided the requirements of section 
         16C.08, subdivisions 3 to 6, are met.32.15    Sec. 20. Minnesota Statutes 2012, section 16C.145, is amended to read:32.1616C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.32.17    (a) The commissioner shall develop nonvisual technology access standards. The 32.18standards must be included in all contracts for the procurement of information technology 32.19by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and 32.20Universities. The University of Minnesota is encouraged to consider similar standards.32.21    (b) The nonvisual access standards must include the following minimum 32.22specifications:32.23    (1) that effective, interactive control and use of the technology including the 32.24operating system, applications programs, prompts, and format of the data presented, are 32.25readily achievable by nonvisual means;32.26    (2) that the nonvisual access technology must be compatible with information 32.27technology used by other individuals with whom the blind or visually impaired individual 32.28must interact;32.29    (3) that nonvisual access technology must be integrated into networks used to share 32.30communications among employees, program participants, and the public; and32.31    (4) that the nonvisual access technology must have the capability of providing 32.32equivalent access by nonvisual means to telecommunications or other interconnected 32.33network services used by persons who are not blind or visually impaired.33.1    (c) Nothing in this section requires the installation of software or peripheral devices 33.2used for nonvisual access when the information technology is being used by individuals 33.3who are not blind or visually impaired.33.4    (d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not 33.5required to include nonvisual technology access standards developed under this section in 33.6contracts for the procurement of information technology.33.7    Sec. 21. Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:33.8    Subd. 3. Solicitation of qualifications or proposals. (a) Every user agency, except 33.9the Capitol Area Architectural and Planning Board, shall submit a written request for a 33.10design-builder for its project to the commissioner who shall forward the request to the 33.11board, consistent with section 
         16B.33, subdivision 3, paragraph (a). The University of 33.12Minnesota shall follow the process in subdivision 4 to select design-builders for projects 33.13that are subject to section 
         16B.33. The written request must include a description of the 33.14project, the total project cost, a description of any special requirements or unique features 33.15of the proposed project, and other information requested by the board which will assist the 33.16board in carrying out its duties and responsibilities set forth in this section.33.17(b) A request for qualifications or proposals soliciting design-builders shall be 33.18prepared for each design-build contract pursuant to subdivision 5 or 7. The request for 33.19qualifications or proposals shall contain, at a minimum, the following elements:33.20(1) the identity of the agency for which the project will be built and that will award 33.21the design-build contract;33.22(2) procedures for submitting qualifications or proposals, the criteria for evaluation 33.23of qualifications or proposals and the relative weight for each criterion and subcriterion, 33.24and the procedures for making awards according to the stated criteria and subcriteria, 33.25including a reference to the requirements of this section;33.26(3) the proposed terms and conditions for the contract;33.27(4) the desired qualifications of the design-builder and the desired or permitted 33.28areas of construction to be performed by named members of the design-build team, if 33.29applicable. The primary designer shall be a named member of the design-build team;33.30(5) the schedule for commencement and completion of the project;33.31(6) any applicable budget limits for the project;33.32(7) the requirements for insurance and statutorily required performance and payment 33.33bonds;33.34(8) the identification and location of any other information in the possession or 33.35control of the agency that the user agency determines is material, which may include 34.1surveys, soils reports, drawings or models of existing structures, environmental studies, 34.2photographs, or references to public records;34.3(9) for a design-build design and price-based selection process, the request shall 34.4also include the design criteria package, including the performance and technical 34.5requirements for the project, and the functional and operational elements for the delivery 34.6of the completed project. The request shall also contain a description of the drawings, 34.7specifications, or other submittals to be included with the proposal, with guidance as to 34.8the form and level of completeness of the drawings, specifications or submittals that will 34.9be acceptable, and the stipend to be paid to the design-builders selected to submit the 34.10above described information; and34.11(10) the criteria shall not impose unnecessary conditions beyond reasonable 34.12requirements to ensure maximum participation of qualified design-builders. The criteria 34.13shall not consider the collective bargaining status of the design-builder.34.14(c) Notice of requests for qualifications or proposals must be advertised in the State 34.15Register a manner designated by the commissioner.34.16    Sec. 22. Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:34.17    Subdivision 1. Solicitation of qualifications. (a) Every user agency, except 34.18the Capitol Area Architectural and Planning Board, shall submit a written request for 34.19proposals for a construction manager at risk for its project to the commissioner. The 34.20written request for proposals must include a description of the project, the estimated cost 34.21of completing the project, a description of any special requirements or unique features of 34.22the proposed project, and other information which will assist the commissioner in carrying 34.23out its duties and responsibilities set forth in this section.34.24(b) The commissioner may include in the request for qualifications criteria a 34.25requirement that the proposer include the overhead and fee that the construction manager 34.26at risk proposes to charge for its services.34.27(c) A request for qualifications shall be prepared for each construction manager at 34.28risk contract as provided in this section. The request for qualifications shall contain, at a 34.29minimum, the following elements:34.30(1) the identity of the agency for which the project will be built and that will award 34.31the construction manager at risk contract;34.32(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation 34.33of qualifications and the relative weight for each criteria and subcriteria, and the procedures 34.34for making awards in an open, competitive, and objective manner, and according to the 34.35stated criteria and subcriteria, including a reference to the requirements of this section;35.1(3) the terms and conditions for the contract;35.2(4) the qualifications that the construction manager at risk shall be desired to have;35.3(5) a schedule for commencement and completion of the project;35.4(6) any applicable budget limits for the project;35.5(7) requirements for insurance, statutorily required performance and payment bonds;35.6(8) identification and location of any other information in the possession or control 35.7of the agency that the user agency determines is material, which may include surveys, soils 35.8reports, drawings or models of existing structures, environmental studies, photographs, or 35.9references to public records; and35.10(9) criteria shall not impose unnecessary conditions beyond reasonable requirements 35.11to ensure maximum participation of construction managers at risk. The criteria shall not 35.12consider the collective bargaining status of the construction manager at risk.35.13(d) Notice of requests for qualifications must be advertised in the State Register a 35.14manner designated by the commissioner.35.15    Sec. 23. [16E.0466] STATE AGENCY TECHNOLOGY PROJECTS.35.16    Every state agency with an information or telecommunications project must consult 35.17with the Office of Enterprise Technology to determine the information technology cost 35.18of the project. Upon agreement between the commissioner of a particular agency and 35.19the chief information officer, the agency must transfer the information technology cost 35.20portion of the project to the Office of Enterprise Technology. Service level agreements 35.21must document all project-related transfers under this section. Those agencies specified in 35.22section 16E.016, paragraph (d), are exempt from the requirements of this section.35.23    Sec. 24. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision 35.24to read:35.25    Subd. 12.Private entity services; fee authority.(a) The office may enter into a 35.26contract with a private entity to manage, maintain, support, and expand North Star and 35.27online government information services to citizens and businesses.35.28    (b) A contract established under paragraph (a) may provide for compensation of the 35.29private entity through a fee established under paragraph (c).35.30    (c) The office, subject to the approval of the agency or office responsible for the 35.31data or services involved in the transaction, may charge and may authorize a private 35.32entity that enters into a contract under paragraph (a) to charge a convenience fee for 35.33users of North Star and online government information services up to a total of $2 per 35.34transaction, provided that no fee shall be charged for viewing or inspecting data. The 36.1office shall consider the recommendation of the E-Government Advisory Council under 36.2section 16E.071 in setting the convenience fee. A fee established under this paragraph is 36.3in addition to any fees or surcharges authorized under other law.36.4    (d) Receipts from the convenience fee shall be deposited in the North Star account 36.5established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts 36.6credited to the account are appropriated to the office for payment to the contracted private 36.7entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the 36.8office can directly transfer the receipts to the private entity or allow the private entity to 36.9retain the receipts pursuant to a contract established under this subdivision.36.10    (e) The office shall report to the chairs and ranking minority members of the house 36.11of representatives and senate committees with jurisdiction over state government finance 36.12by January 15 of each odd-numbered year regarding the convenience fee receipts and 36.13the status of North Star projects and online government information services developed 36.14and supported by convenience fee receipts.36.15    Sec. 25. [16E.071] E-GOVERNMENT ADVISORY COUNCIL.36.16    Subdivision 1.E-Government Advisory Council established.The E-Government 36.17Advisory Council is established for the purpose of improving online government 36.18information services to citizens and businesses. 36.19    Subd. 2.Membership.The council shall consist of nine members as follows:36.20    (1) the state chief information officer or the chief information officer's designee;36.21    (2) one public member appointed by the speaker of the house;36.22    (3) one public member appointed by the senate Subcommittee on Committees of 36.23the Rules and Administration Committee;36.24    (4) five members appointed by the governor representing state executive branch 36.25agencies that are actively involved with private businesses, the private business 36.26community, or the public; and36.27    (5) one member appointed by the governor who is knowledgeable in public access 36.28to government data.36.29    Subd. 3.Initial appointments and first meeting.Appointing authorities shall make 36.30the first appointments to the council by September 1, 2013. The first member appointed by 36.31the speaker of the house shall serve until the first Monday in January, 2015. The governor 36.32shall designate three initial appointees to serve until the first Monday in January 2015. The 36.33term of the other three initial appointees of the governor and the first member appointed 36.34by the senate shall be until the first Monday in January 2017. The chief information officer 37.1or the chief information officer's designee shall convene the council's first meeting by 37.2November 1, 2013, and shall act as chair until the council elects a chair at its first meeting.37.3    Subd. 4.Terms; removal; vacancies; compensation.Membership terms, removal 37.4of member, and filling of vacancies are as provided in section 15.059, except that members 37.5shall not receive compensation or be reimbursed for expenses and except that terms of 37.6initial appointees are as provided in subdivision 3.37.7    Subd. 5.Chair.The council shall annually elect a chair from its members.37.8    Subd. 6.Duties.The council shall recommend to the office the priority of North 37.9Star projects and online government information services to be developed and supported 37.10by convenience fee receipts. The council shall provide oversight on the convenience fee 37.11and its receipts in the North Star account. The council shall by majority quorum vote to 37.12recommend to approve or disapprove establishing the convenience fee on particular types 37.13of transactions, the fee amount, and any changes in the fee amount. If the convenience fee 37.14receipts are retained by or transferred to the private entity in lieu of deposit in the North 37.15Star account, the council may audit the private entity's convenience fee receipts, expenses 37.16paid by the receipts, and associated financial statements.37.17    Subd. 7.Staff.The office shall provide administrative support to the council.37.18    Subd. 8.Sunset.The council shall expire the first Monday in January 2017.37.19    Subd. 9.Reports.By June 1, 2014, and every year thereafter, the council shall 37.20report to the office with its recommendations regarding establishing the convenience fee, 37.21the fee amount, and changes to the fee amount.37.22    Sec. 26. Minnesota Statutes 2012, section 32C.04, is amended to read:37.2332C.04 ACCOUNTS; AUDITS.37.24The authority may establish funds and accounts that it determines to be reasonable and 37.25necessary to conduct the business of the authority. The board shall provide for and pay the 37.26cost of an independent annual audit of its official books and records be subject to audit by 37.27the state legislative auditor. A copy of this an audit must be filed with the secretary of state.37.28    Sec. 27. Minnesota Statutes 2012, section 129D.14, subdivision 2, is amended to read:37.29    Subd. 2. Definitions. As used in this section, the terms defined in this subdivision 37.30have the meanings given them.37.31(a) "Corporation for Public Broadcasting" or "CPB" means the nonprofit organization 37.32established pursuant to United States Code, title 47, section 396.37.33(b) "Federal Communications Commission" or "FCC" means the federal agency 37.34established pursuant to United States Code, title 47, section 151.38.1(c) "Licensee" means the individual or business an entity to whom which the Federal 38.2Communications Commission has issued the a license to operate a noncommercial radio 38.3station as defined in Code of Federal Regulations, title 47, subpart D, section 73.503.38.4(d) "Noncommercial radio station" means a station operated by a licensee of the FCC 38.5as a noncommercial educational radio station under a license or program test authority from 38.6the Federal Communications Commission as a noncommercial educational radio station as 38.7defined in Code of Federal Regulations, title 47, subpart D, section 73.503, licensed to a 38.8community within the state and serving a segment of the population of the state.38.9(e) "Operating income" may include:38.10(1) individual and other community contributions;38.11(2) all grants received from the Corporation for Public Broadcasting;38.12(3) grants received from foundations, corporations, or federal, state, or local agencies 38.13or other sources for the purpose of programming or general operating support;38.14(4) interest income;38.15(5) earned income;38.16(6) employee salaries paid through the federal Comprehensive Employment and 38.17Training Act, or other similar public employment programs, provided that only salary 38.18expended for employee duties directly relating to radio station operations shall be counted;38.19(7) employee salaries paid through supporting educational institutions, provided that 38.20only salary expended for employee duties directly relating to radio station operations 38.21shall be counted;38.22(8) direct operating costs provided by supporting educational institutions; and38.23(9) no more than $15,000 in volunteer time calculated at the federal minimum wage.38.24The following are specifically excluded in determining a station's operating income:38.25(1) dollar representations in in-kind assistance from any source except as stipulated 38.26in clauses (8) and (9) above;38.27(2) grants or contributions from any source for the purpose of purchasing capital 38.28improvements or equipment; and38.29(3) noncommercial radio station grants received in the previous fiscal year pursuant 38.30to this section.38.31(f) "Local" means the area designated by the FCC's 60 dBu contour map.38.32    Sec. 28. Minnesota Statutes 2012, section 129D.14, subdivision 3, is amended to read:38.33    Subd. 3. Eligibility.(a) To qualify for a grant under this section, the licensee shall38.34 must:39.1(a) (1) hold a valid noncommercial educational radio station license or program test 39.2authority from the Federal Communications Commission; FCC that is a Class "A" or "C" 39.3FM, as defined in Code of Federal Regulations, title 47, subpart B, sections 73.210 and 39.473.211 or Class "C" or "D" AM, as defined in Code of Federal Regulations, title 47, 39.5subpart A, section 73.21. Stations with a Class "L1" and "LP100" are not eligible for this 39.6funding. The station must be licensed to a community in the state of Minnesota and must 39.7be operated as a noncommercial educational station.39.8(b) (2) have facilities adequate to provide local program production and origination;39.9(c) (3) employ a minimum of two full-time professional radio staff persons or the 39.10equivalent in part-time staff and agree to employ a minimum of two full-time professional 39.11radio staff persons or the equivalent in part-time staff throughout the fiscal year of the grant;39.12(d) (4) maintain a minimum daily broadcasting schedule of (1) (i) the maximum 39.13allowed by its Federal Communications Commission license or (2) (ii) 12 hours a day 39.14during the first year of eligibility for state assistance, 15 hours a day during the second 39.15year of eligibility and 18 hours a day during the third and following years of eligibility;39.16(e) (5) broadcast 365 days a year or the maximum number of days allowed by its 39.17Federal Communications Commission license with an exception for power outages and 39.18natural disasters;39.19(f) (6) have a daily broadcast schedule devoted primarily to programming that serves 39.20ascertained community needs of an educational, informational or cultural nature within 39.21its primary signal area; however, a program schedule of a main channel carrier designed 39.22to further the principles of one or more particular religious philosophies or including 25 39.23percent or more religious programming on a broadcast day does not meet this criterion, 39.24nor does a program schedule of a main channel carrier designed primarily for in-school or 39.25professional in-service audiences;39.26(g) (7) originate significant, locally produced programming designed to serve its 39.27community of license;39.28(h) (8) have a total annual operating income and budget of at least $50,000;39.29(i) (9) have either a board of directors representing the community or a community 39.30advisory board that conducts advisory board meetings that are open to the public;39.31(j) (10) have a board of directors that: (1) (i) holds the portion of any meeting 39.32relating to the management or operation of the radio station open to the public and (2)39.33 (ii) permits any person to attend any meeting of the board without requiring a person, 39.34as a condition to attendance at the meeting, to register the person's name or to provide 39.35any other information; and40.1(k) (11) have met the criteria in clauses (a) (1) to (j) (10) for six months before it is 40.2eligible for state assistance under this section.40.3(b) The commissioner shall accept the judgment of Corporation for Public 40.4Broadcasting accepted audit when it is available on a station's eligibility for assistance 40.5under the criteria of this subdivision. If the station is not qualified for assistance or is 40.6qualified for but not receiving funding from the Corporation for Public Broadcasting, an 40.7independent audit is required to verify eligibility under paragraph (a), clause (8). If neither 40.8is available, the commissioner may accept a written declaration of eligibility signed by 40.9an independent auditor, a certified public accountant, or the chief executive officer of the 40.10station's parent organization if it is an institution of education.40.11    Sec. 29. Minnesota Statutes 2012, section 129D.15, is amended to read:40.12129D.15 EQUIPMENT GRANTS.40.13To be eligible for an equipment grant under sections 
         129D.11 to 
         129D.14, a public 40.14broadcasting station must meet the eligibility criteria set forth in sections 
         129D.13 and 40.15129D.14
         . Before receiving an equipment grant, a station must submit to the commissioner 40.16a list of the equipment the station plans to purchase with the equipment grant. The 40.17commissioner may not require the station to purchase equipment before receiving the 40.18grant funds. A station must report  to the commissioner a list of the equipment purchased 40.19with the grant.40.20    Sec. 30. Minnesota Statutes 2012, section 129D.155, is amended to read:40.21129D.155 REPAYMENT OF FUNDS.40.22State funds distributed to public television or noncommercial radio stations and used 40.23to purchase equipment assets must be repaid to the state, without interest, if the assets 40.24purchased with these funds are sold within five years or otherwise converted to a person 40.25other than a nonprofit or municipal corporation. The amount due to the state shall be the 40.26net amount realized from the sale of the assets, but shall not exceed the amount of state 40.27funds advanced for the purchase of the asset. The commissioner of administration may 40.28approve the use of funds derived from the sale of such assets for the purchase of new 40.29equipment for similar purposes.40.30    Sec. 31. Minnesota Statutes 2012, section 161.1419, subdivision 3, is amended to read:40.31    Subd. 3. Investigatory powers; Chair, vice-chair, and secretary. The commission 40.32may hold meetings and hearings at such time and places as it may designate to accomplish 40.33the purposes set forth in this section and may subpoena witnesses and records. It shall select 41.1a chair, a vice-chair, and such other officers from its membership as it deems necessary. 41.2The commission shall appoint a secretary who shall also serve as a commission member.41.3    Sec. 32. Minnesota Statutes 2012, section 469.3201, is amended to read:41.4469.3201 STATE LEGISLATIVE AUDITOR; AUDITS OF JOB 41.5OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.41.6    As resources allow, the Office of the State Auditor legislative auditor must annually41.7 audit the creation and operation of all job opportunity building zones and business 41.8subsidy agreements entered into under Minnesota Statutes, sections 
         469.310 to 
         469.320. 41.9To the extent necessary to perform this audit, the state auditor may request from the 41.10commissioner of revenue tax return information of taxpayers who are eligible to receive 41.11tax benefits authorized under section 469.315. To the extent necessary to perform this 41.12audit, the state auditor may request from the commissioner of employment and economic 41.13development wage detail report information required under section 268.044 of taxpayers 41.14eligible to receive tax benefits authorized under section 469.315 All public officials and 41.15parties to the agreements shall provide the legislative auditor with all documents and 41.16data the legislative auditor deems necessary and in all other respects comply with the 41.17requirements of section 3.978, subdivision 2.41.18    Sec. 33. Minnesota Statutes 2012, section 471.699, is amended to read:41.19471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.41.20Failure of a city to timely file a statement or report under section 
         471.697 or 
         471.69841.21shall, in addition to any other penalties provided by law, authorize the state auditor to send 41.22full-time personnel to the city or to contract with private persons, firms, or corporations 41.23pursuant to section 
         6.58 6.581, in order to complete and file the financial statement or 41.24report. The expenses related to the completion and filing of the financial statement or 41.25report shall be charged to the city. Upon failure by the city to pay the charge within 30 41.26days of billing, the state auditor shall so certify to the commissioner of management and 41.27budget who shall forward the amount certified to the general fund and deduct the amount 41.28from any state funds due to the city under any shared taxes or aids. The state auditor's 41.29annual report on cities shall include a listing of all cities failing to file a statement or report.41.30    Sec. 34. LEGISLATIVE ADVISORY COMMISSION CHAIR; 2013.41.31Under Minnesota Statutes, section 3.30, subdivision 2, the chair of the Legislative 41.32Advisory Commission must be a member of the senate in 2013.42.1    Sec. 35. AUDIT OF FINANCIAL STATEMENTS.42.2The legislative auditor shall examine alternatives for achieving an annual 42.3independent audit of the financial statements of the state of Minnesota required by 42.4Minnesota Statutes, section 16A.50, and make recommendations to the Legislative Audit 42.5Commission and appropriate legislative committees by October 1, 2013.42.6    Sec. 36. REVISOR'S INSTRUCTION.42.7In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:42.8(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise 42.9Technology" in each place where the latter term appears; and42.10(2) substitute the term "MN.IT services revolving fund" for "enterprise technology 42.11revolving fund" in each place where the latter term appears.42.12    Sec. 37. REPEALER.42.13Minnesota Statutes 2012, sections 3.304, subdivisions 1 and 5; 3.885, subdivision 42.1410; and 6.58, are repealed.42.15ARTICLE 442.16MILITARY AND VETERANS PROVISIONS42.17    Section 1. Minnesota Statutes 2012, section 192.26, is amended to read:42.18192.26 STATE AND MUNICIPAL OFFICERS AND EMPLOYEES NOT TO 42.19LOSE PAY WHILE ON  AUTHORIZED LEAVE FOR MILITARY DUTY.42.20    Subdivision 1. Authorized leave. Subject to the conditions hereinafter prescribed, 42.21any officer or employee of the state or of any political subdivision, municipal corporation, 42.22or other public agency of the state who shall be a member of the National Guard, or any 42.23other component of the militia of the state now or hereafter organized or constituted 42.24under state or federal law, or who shall be a member of the officers' reserve corps, the 42.25enlisted reserve corps, the Naval Reserve, the Marine Corps reserve, or any other reserve 42.26component of the military or naval forces of the United States now or hereafter organized 42.27or constituted under federal law, shall be entitled to leave of absence from the public 42.28office or employment without loss of pay, seniority status, efficiency rating, vacation, 42.29sick leave, or other benefits for all the time when engaged with such organization or 42.30component in training or active service ordered or authorized by proper authority pursuant 42.31to law, whether for state or federal purposes, but not exceeding a total of 15 days in any 42.32calendar year. The state or political subdivision, municipal corporation, or other public 42.33agency shall allow the officer or employee to choose when during the calendar year to 43.1take the 15 days of paid military leave. The officer or employee may choose to use all of 43.2the 15 days of paid military leave at one time or, in the alternative, the 15 days of paid 43.3military leave may be divided and taken throughout the calendar year at the discretion of 43.4the officer or employee. Such leave shall be allowed only in case the required military or 43.5naval service is satisfactorily performed, which shall be presumed unless the contrary is 43.6established. Such leave shall not be allowed unless the officer or employee (1) returns to 43.7the public position immediately on being relieved from such military or naval service and 43.8not later than the expiration of the time herein limited for such leave, or (2) is prevented 43.9from so returning by physical or mental disability or other cause not due to the officer's or 43.10employee's own fault, or (3) is required by proper authority to continue in such military or 43.11naval service beyond the time herein limited for such leave.43.12    Sec. 2. Minnesota Statutes 2012, section 197.608, subdivision 1, is amended to read:43.13    Subdivision 1. Grant program. A veterans service office grant program is 43.14established to be administered by the commissioner of veterans affairs consisting of grants 43.15to counties to enable them to enhance the effectiveness of their veterans service offices.43.16 "Commissioner" as used in this section means the commissioner of veterans affairs.43.17    Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:43.18    Subd. 3. Eligibility. (a) To be eligible for a grant under this program subdivision 6, 43.19a county must employ a county veterans service officer as authorized by sections 
         197.6043.20and 
         197.606, who is certified to serve in this position by the commissioner.43.21(b) A county that employs a newly hired county veterans service officer who is 43.22serving an initial probationary period and who has not been certified by the commissioner 43.23is eligible to receive a grant under subdivision 2a 6 for one year from the date the county 43.24veterans service officer is appointed.43.25(c) Except for the situation described in paragraph (b), A county whose county 43.26veterans service officer does not receive certification during any year of the three-year 43.27cycle is not eligible to receive a grant during the remainder of that cycle or the next 43.28three-year cycle by the end of the first year of the county veterans service officer's 43.29appointment is ineligible for the grant under subdivision 6 until the county veterans 43.30service officer receives certification.43.31    Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:44.1    Subd. 4. Grant process. (a) The commissioner shall determine the process for 44.2awarding grants. A grant may be used only for the purpose of enhancing the operations of 44.3the County Veterans Service Office.44.4(b) The commissioner shall provide a list of qualifying uses for grant expenditures 44.5as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a 44.6qualifying use and if there are sufficient funds remaining in the grant program to cover the 44.7full amount of the grant.44.8(c) The commissioner is authorized to use any unexpended funding for this program 44.9to provide training and education for county veterans service officers.44.10    Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:44.11    Subd. 5. Qualifying uses. The commissioner shall consult with the Minnesota 44.12Association of County Veterans Service Officers in developing a list of qualifying uses for 44.13grants awarded under this program subdivision 6. 44.14The commissioner is authorized to use any unexpended funding for this program to 44.15provide training and education for county veterans service officers.44.16    Sec. 6. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:44.17    Subd. 6. Grant amount.(a) Each county is eligible to receive an annual grant of 44.18$7,500 for the following purposes: 44.19(1) to provide outreach to the county's veterans;44.20(2) to assist in the reintegration of combat veterans into society;44.21(3) to collaborate with other social service agencies, educational institutions, and 44.22other community organizations for the purposes of enhancing services offered to veterans;44.23(4) to reduce homelessness among veterans; and44.24(5) to enhance the operations of the county veterans service office.44.25(b) In addition to the grant amount in paragraph (a), each county is eligible to receive 44.26an additional annual grant under this paragraph. The amount of each additional annual 44.27grant must be determined by the commissioner and may not exceed:44.28(1) $1,400 $0, if the county's veteran population is less than 1,000;44.29(2) $2,800 $2,500, if the county's veteran population is 1,000 or more but less than 44.303,000;44.31(3) $4,200 $5,000, if the county's veteran population is 3,000 or more but less then 44.3210,000 than 4,999; or44.33(4) $5,600 $7,500, if the county's veteran population is 10,000 5,000 or more. but 44.34less than 9,999;45.1(5) $10,000, if the county's veteran population is 10,000 or more but less than 19,999;45.2(6) $15,000, if the county's veteran population is 20,000 or more but less than 45.329,999; or45.4(7) $20,000, if the county's veteran population is 30,000 or more.45.5(c) The Minnesota Association of County Veterans Service Officers is eligible to 45.6receive an annual grant of $50,000. The grant shall be used for administrative costs of 45.7the association, certification of mandated county veterans service officer training and 45.8accreditation, and costs associated with reintegration services.45.9The veteran population of each county shall be determined by the figure supplied by 45.10the United States Department of Veterans Affairs, as adopted by the commissioner.45.11    Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:45.12    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this 45.13section if:45.14    (1) the person is:45.15    (i) a veteran who is serving or has served honorably in any branch or unit of the 45.16United States armed forces at any time on or after September 11, 2001;45.17    (ii) a nonveteran who has served honorably for a total of five years or more 45.18cumulatively as a member of the Minnesota National Guard or any other active or reserve 45.19component of the United States armed forces, and any part of that service occurred on or 45.20after September 11, 2001;45.21    (iii) the surviving spouse or child of a person who has served in the military at any 45.22time on or after September 11, 2001, and who has died as a direct result of that military 45.23service, only if the surviving spouse or child is eligible to receive federal education 45.24benefits under United States Code, title 38, chapter 33, as amended, or United States 45.25Code, title 38, chapter 35, as amended; or45.26    (iv) the spouse or child of a person who has served in the military at any time on or 45.27after September 11, 2001, and who has a total and permanent service-connected disability 45.28as rated by the United States Veterans Administration, only if the spouse or child is 45.29eligible to receive federal education benefits under United States Code, title 38, chapter 45.3033, as amended, or United States Code, title 38, chapter 35, as amended; and45.31    (2) the person receiving the educational assistance is a Minnesota resident, as 45.32defined in section 
         136A.101, subdivision 8; and45.33    (3) the person receiving the educational assistance:45.34    (i) is an undergraduate or graduate student at an eligible institution;46.1    (ii) is maintaining satisfactory academic progress as defined by the institution for 46.2students participating in federal Title IV programs;46.3    (iii) is enrolled in an education program leading to a certificate, diploma, or degree 46.4at an eligible institution;46.5    (iv) has applied for educational assistance under this section prior to the end of the 46.6academic term for which the assistance is being requested;46.7    (v) is in compliance with child support payment requirements under section 46.8136A.121, subdivision 2
         , clause (5); and46.9    (vi) has completed the Free Application for Federal Student Aid (FAFSA).46.10    (b) A person's eligibility terminates when the person becomes eligible for benefits 46.11under section 
         135A.52.46.12    (c) To determine eligibility, the commissioner may require official documentation, 46.13including the person's federal form DD-214 or other official military discharge papers; 46.14correspondence from the United States Veterans Administration; birth certificate; marriage 46.15certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 46.16residency; proof of identity; or any other official documentation the commissioner 46.17considers necessary to determine eligibility.46.18    (d) The commissioner may deny eligibility or terminate benefits under this section 46.19to any person who has not provided sufficient documentation to determine eligibility for 46.20the program. An applicant may appeal the commissioner's eligibility determination or 46.21termination of benefits in writing to the commissioner at any time. The commissioner 46.22must rule on any application or appeal within 30 days of receipt of all documentation that 46.23the commissioner requires. The decision of the commissioner regarding an appeal is final. 46.24However, an applicant whose appeal of an eligibility determination has been rejected by 46.25the commissioner may submit an additional appeal of that determination in writing to the 46.26commissioner at any time that the applicant is able to provide substantively significant 46.27additional information regarding the applicant's eligibility for the program. An approval 46.28of an applicant's eligibility by the commissioner following an appeal by the applicant is 46.29not retroactively effective for more than one year or the semester of the person's original 46.30application, whichever is later.46.31    (e) Upon receiving an application with insufficient documentation to determine 46.32eligibility, the commissioner must notify the applicant within 30 days of receipt of the 46.33application that the application is being suspended pending receipt by the commissioner of 46.34sufficient documentation from the applicant to determine eligibility.46.35    Sec. 8. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:47.1    Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for 47.2the program, the applicant shall be awarded, on a funds-available basis, the educational 47.3assistance under the program for use at any time according to program rules at any 47.4eligible institution.47.5    (b) The amount of educational assistance in any semester or term for an eligible 47.6person must be determined by subtracting from the eligible person's cost of attendance the 47.7amount the person received or was eligible to receive in that semester or term from:47.8    (1) the federal Pell Grant;47.9    (2) the state grant program under section 
         136A.121; and47.10    (3) any federal military or veterans educational benefits including but not limited 47.11to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 47.12vocational rehabilitation benefits, and any other federal benefits associated with the 47.13person's status as a veteran, except veterans disability payments from the United States 47.14Veterans Administration and payments made under the Veterans Retraining Assistance 47.15Program (VRAP).47.16    (c) The amount of educational assistance for any eligible person who is a full-time 47.17student must not exceed the following:47.18    (1) $1,000 per semester or term of enrollment;47.19    (2) $3,000 per state fiscal year; and47.20    (3) $10,000 in a lifetime.47.21    For a part-time student, the amount of educational assistance must not exceed 47.22$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time 47.23undergraduate student is a student taking fewer than 12 credits or the equivalent for a 47.24semester or term of enrollment and a part-time graduate student is a student considered 47.25part time by the eligible institution the graduate student is attending. The minimum award 47.26for undergraduate and graduate students is $50 per term.47.27    Sec. 9. Minnesota Statutes 2012, section 364.03, subdivision 3, is amended to read:47.28    Subd. 3. Evidence of rehabilitation. (a) A person who has been convicted of a 47.29crime or crimes which directly relate to the public employment sought or to the occupation 47.30for which a license is sought shall not be disqualified from the employment or occupation 47.31if the person can show competent evidence of sufficient rehabilitation and present fitness to 47.32perform the duties of the public employment sought or the occupation for which the license 47.33is sought. SufficientCompetent evidence of sufficient rehabilitation may be established by 47.34the production of the person's most recent certified copy of a United States Department 47.35of Defense form DD-214 showing the person's honorable discharge, or separation under 48.1honorable conditions, from the United States armed forces for military service rendered 48.2following conviction for any crime that would otherwise disqualify the person from the 48.3public employment sought or the occupation for which the license is sought, or:48.4(1) a copy of the local, state, or federal release order; and48.5(2) evidence showing that at least one year has elapsed since release from any local, 48.6state, or federal correctional institution without subsequent conviction of a crime; and 48.7evidence showing compliance with all terms and conditions of probation or parole; or48.8(3) a copy of the relevant Department of Corrections discharge order or other 48.9documents showing completion of probation or parole supervision.48.10(b) In addition to the documentary evidence presented, the licensing or hiring 48.11authority shall consider any evidence presented by the applicant regarding:48.12(1) the nature and seriousness of the crime or crimes for which convicted;48.13(2) all circumstances relative to the crime or crimes, including mitigating 48.14circumstances or social conditions surrounding the commission of the crime or crimes;48.15(3) the age of the person at the time the crime or crimes were committed;48.16(4) the length of time elapsed since the crime or crimes were committed; and48.17(5) all other competent evidence of rehabilitation and present fitness presented, 48.18including, but not limited to, letters of reference by persons who have been in contact with 48.19the applicant since the applicant's release from any local, state, or federal correctional 48.20institution.48.21(c) The certified copy of a person's United States Department of Defense form 48.22DD-214 showing the person's honorable discharge or separation under honorable 48.23conditions from the United States armed forces ceases to qualify as competent evidence of 48.24sufficient rehabilitation for purposes of this section upon the person's conviction for any 48.25gross misdemeanor or felony committed by the person subsequent to the effective date of 48.26that honorable discharge or separation from military service.48.27    Sec. 10. [471.3457] VETERAN-OWNED SMALL BUSINESS CONTRACTS.48.28    Subdivision 1.Definitions.For the purposes of this section:48.29(1) "local government" means a town or home rule charter or statutory city; and48.30(2) "governing body" means the town board of supervisors or city council.48.31    Subd. 2.Authority.The governing body of a local government may implement a 48.32program within its jurisdiction to provide a bid preference in awarding contracts as defined 48.33in section 471.345, and in awarding contracts for services, to designated veteran-owned 48.34small businesses, as provided in section 375.771.49.1    Sec. 11. Minnesota Statutes 2012, section 626.8517, is amended to read:49.2626.8517 ELIGIBILITY FOR RECIPROCITY EXAMINATION BASED ON 49.3RELEVANT MILITARY EXPERIENCE.49.4(a) For purposes of this section:49.5(1) "active service" has the meaning given in section 
         190.05, subdivision 5; and49.6(2) "relevant military experience" means:49.7(i) five years' active service experience in a military law enforcement occupational 49.8specialty;49.9(ii) three years' active service experience in a military law enforcement occupational 49.10specialty, and completion of a two-year or more degree from a regionally accredited 49.11postsecondary education institution; or49.12(iii) five years' cumulative experience as a full-time peace officer in another state 49.13combined with active service experience in a military law enforcement occupational 49.14specialty.49.15(b) A person who has relevant military experience and who is eligible to take the 49.16reciprocity examination if the person has relevant military experience and:49.17(1)  has been honorably discharged from military active service as evidenced by a the 49.18most recent form DD-214 is eligible to take the reciprocity examination.; or49.19(2) is currently in active service as evidenced by: 49.20(i) active duty orders providing service time in military police specialty;49.21(ii) a United States Department of Defense Manpower Data Center status report 49.22pursuant to Service Members Civil Relief Act, active duty status report; or49.23(iii) Military Personnel Center assignment information.49.24(c) A person who passed the examination under paragraph (b), clause (2), shall 49.25not be eligible to be licensed as a peace officer until honorably discharged as evidenced 49.26by the most recent form DD-214.49.27    Sec. 12.  REPEALER.49.28Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.49.29ARTICLE 549.30REVENUE DEPARTMENT49.31    Section 1. Minnesota Statutes 2012, section 16A.82, is amended to read:49.3216A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.49.33The following amounts are appropriated from the general fund to the commissioner 49.34to make payments under a lease-purchase agreement as defined in section 
         16A.81 for 50.1replacement of the state's accounting and procurement systems, provided that the state 50.2is not obligated to continue such appropriation of funds or to make lease payments 50.3in any future fiscal year.

50.4Fiscal year 2010$2,828,03850.5Fiscal year 2011$3,063,95050.6Fiscal year 2012$8,967,85050.7Fiscal year 2013$8,968,95050.8Fiscal year 2014$8,970,85050.9Fiscal year 2015$8,971,15050.10Fiscal year 2016$8,966,45050.11Fiscal year 2017$8,967,50050.12Fiscal year 2018$8,970,75050.13Fiscal year 2019$8,968,500

50.14Of these appropriations, up to $2,000 per year may be used to pay the annual trustee 50.15fees for the lease-purchase agreements authorized in this section and section 270C.145. 50.16Any unexpended portions of this appropriation cancel to the general fund at the close of 50.17each biennium. This section expires June 30, 2019.50.18    Sec. 2. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:50.19    Subdivision 1. Program described; commissioner's duties; appropriation. (a) 50.20The commissioner of commerce shall:50.21(1) develop and sponsor the implementation of statewide plans, programs, and 50.22strategies to combat automobile theft, improve the administration of the automobile theft 50.23laws, and provide a forum for identification of critical problems for those persons dealing 50.24with automobile theft;50.25(2) coordinate the development, adoption, and implementation of plans, programs, 50.26and strategies relating to interagency and intergovernmental cooperation with respect 50.27to automobile theft enforcement;50.28(3) annually audit the plans and programs that have been funded in whole or in part 50.29to evaluate the effectiveness of the plans and programs and withdraw funding should the 50.30commissioner determine that a plan or program is ineffective or is no longer in need 50.31of further financial support from the fund;50.32(4) develop a plan of operation including:50.33(i) an assessment of the scope of the problem of automobile theft, including areas 50.34of the state where the problem is greatest;50.35(ii) an analysis of various methods of combating the problem of automobile theft;50.36(iii) a plan for providing financial support to combat automobile theft;51.1(iv) a plan for eliminating car hijacking; and51.2(v) an estimate of the funds required to implement the plan; and51.3(5) distribute money, in consultation with the commissioner of public safety, 51.4pursuant to subdivision 3 from the automobile theft prevention special revenue account 51.5for automobile theft prevention activities, including:51.6(i) paying the administrative costs of the program;51.7(ii) providing financial support to the State Patrol and local law enforcement 51.8agencies for automobile theft enforcement teams;51.9(iii) providing financial support to state or local law enforcement agencies for 51.10programs designed to reduce the incidence of automobile theft and for improved 51.11equipment and techniques for responding to automobile thefts;51.12(iv) providing financial support to local prosecutors for programs designed to reduce 51.13the incidence of automobile theft;51.14(v) providing financial support to judicial agencies for programs designed to reduce 51.15the incidence of automobile theft;51.16(vi) providing financial support for neighborhood or community organizations or 51.17business organizations for programs designed to reduce the incidence of automobile 51.18theft and to educate people about the common methods of automobile theft, the models 51.19of automobiles most likely to be stolen, and the times and places automobile theft is 51.20most likely to occur; and51.21(vii) providing financial support for automobile theft educational and training 51.22programs for state and local law enforcement officials, driver and vehicle services exam 51.23and inspections staff, and members of the judiciary.51.24(b) The commissioner may not spend in any fiscal year more than ten percent of the 51.25money in the fund for the program's administrative and operating costs. The commissioner 51.26is annually appropriated and must distribute the amount of the proceeds credited to 51.27the automobile theft prevention special revenue account each year, less the transfer 51.28of $1,300,000 each year to the general fund described in section 
         168A.40, subdivision 51.294 297I.11, subdivision 2.51.30EFFECTIVE DATE.This section is effective for premiums collected after June 51.3130, 2013.51.32    Sec. 3. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:51.33    Subdivision 1. Notice and procedures. (a) The commissioner may, within five years 51.34after the date of assessment of the tax, or if a lien has been filed under section 
         270C.63, 51.35within the statutory period for enforcement of the lien, give notice to any employer 52.1deriving income which has a taxable situs in this state regardless of whether the income is 52.2exempt from taxation, that an employee of that employer is delinquent in a certain amount 52.3with respect to any taxes, including penalties, interest, and costs. The commissioner can 52.4proceed under this section only if the tax is uncontested or if the time for appeal of the tax 52.5has expired. The commissioner shall not proceed under this section until the expiration of 52.630 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice 52.7of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for 52.8their payment, and (2) the commissioner's intention to require additional withholding by 52.9the taxpayer's employer pursuant to this section. The effect of the notice shall expire one 52.10year after it has been mailed to the taxpayer provided that the notice may be renewed by 52.11mailing a new notice which is in accordance with this section. The renewed notice shall 52.12have the effect of reinstating the priority of the original claim. The notice to the taxpayer 52.13shall be in substantially the same form as that provided in section 
         571.72. The notice 52.14shall further inform the taxpayer of the wage exemptions contained in section 
         550.37, 52.15subdivision 14
         . If no statement of exemption is received by the commissioner within 30 52.16days from the mailing of the notice, the commissioner may proceed under this section. 52.17The notice to the taxpayer's employer may be served by mail or by delivery by an agent of 52.18the department and shall be in substantially the same form as provided in section 
         571.75. 52.19Upon receipt of notice, the employer shall withhold from compensation due or to become 52.20due to the employee, the total amount shown by the notice, subject to the provisions of 52.21section 
         571.922. The employer shall continue to withhold each pay period until the notice 52.22is released by the commissioner under section 
         270C.7109. Upon receipt of notice by the 52.23employer, the claim of the state of Minnesota shall have priority over any subsequent 52.24garnishments or wage assignments. The commissioner may arrange between the employer 52.25and the employee for withholding a portion of the total amount due the employee each pay 52.26period, until the total amount shown by the notice plus accrued interest has been withheld.52.27(b) The "compensation due" any employee is defined in accordance with the 52.28provisions of section 
         571.921. The maximum withholding allowed under this section for 52.29any one pay period shall be decreased by any amounts payable pursuant to a garnishment 52.30action with respect to which the employer was served prior to being served with the notice 52.31of delinquency and any amounts covered by any irrevocable and previously effective 52.32assignment of wages; the employer shall give notice to the commissioner of the amounts 52.33and the facts relating to such assignments within ten days after the service of the notice of 52.34delinquency on the form provided by the commissioner as noted in this section.52.35(c) Within ten days after the expiration of such pay period, the employer shall remit 52.36to the commissioner, on a form and in the manner prescribed by the commissioner, the 53.1amount withheld during each pay period under this section. The employer must file all 53.2wage levy disclosure forms and remit all wage levy payments by electronic means.53.3EFFECTIVE DATE.This section is effective for wage levy disclosures or wage 53.4levy payments filed or made after December 31, 2013.53.5    Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:53.6    Subd. 2. Withholding from wages, entertainer withholding, withholding 53.7from payments to out-of-state contractors, and withholding by partnerships, small 53.8business corporations, trusts. (a) A tax required to be deducted and withheld during the 53.9quarterly period must be paid on or before the last day of the month following the close of 53.10the quarterly period, unless an earlier time for payment is provided. A tax required to be 53.11deducted and withheld from compensation of an entertainer and from a payment to an 53.12out-of-state contractor must be paid on or before the date the return for such tax must be 53.13filed under section 
         289A.18, subdivision 2. Taxes required to be deducted and withheld 53.14by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated 53.15taxes under section 
         289A.25 for partnerships and trusts and under section 
         289A.26 for S 53.16corporations.53.17(b) An employer who, during the previous quarter, withheld more than $1,500 of 53.18tax under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 2, must deposit tax 53.19withheld under those sections with the commissioner within the time allowed to deposit 53.20the employer's federal withheld employment taxes under Code of Federal Regulations, 53.21title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the 53.22safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). 53.23Taxpayers must submit a copy of their federal notice of deposit status to the commissioner 53.24upon request by the commissioner.53.25(c) The commissioner may prescribe by rule other return periods or deposit 53.26requirements. In prescribing the reporting period, the commissioner may classify payors 53.27according to the amount of their tax liability and may adopt an appropriate reporting 53.28period for the class that the commissioner judges to be consistent with efficient tax 53.29collection. In no event will the duration of the reporting period be more than one year.53.30(d) If less than the correct amount of tax is paid to the commissioner, proper 53.31adjustments with respect to both the tax and the amount to be deducted must be made, 53.32without interest, in the manner and at the times the commissioner prescribes. If the 53.33underpayment cannot be adjusted, the amount of the underpayment will be assessed and 53.34collected in the manner and at the times the commissioner prescribes.53.35(e) If the aggregate amount of the tax withheld is:54.1(1) $20,000 or more in the fiscal year ending June 30, 2005; or54.2(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 54.3thereafter,54.4the employer must remit each required deposit for wages paid in the all subsequent 54.5calendar year years by electronic means.54.6(f) A third-party bulk filer as defined in section 
         290.92, subdivision 30, paragraph 54.7(a), clause (2), who remits withholding deposits must remit all deposits by electronic 54.8means as provided in paragraph (e), regardless of the aggregate amount of tax withheld 54.9during a fiscal year for all of the employers.54.10EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 54.112013, and all fiscal years thereafter.54.12    Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:54.13    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 54.14payable to the commissioner monthly on or before the 20th day of the month following 54.15the month in which the taxable event occurred, or following another reporting period 54.16as the commissioner prescribes or as allowed under section 
         289A.18, subdivision 4, 54.17paragraph (f) or (g), except that:54.18(1) use taxes due on an annual use tax return as provided under section 
         289A.11, 54.19subdivision 1
         , are payable by April 15 following the close of the calendar year; and54.20(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 54.21or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 54.22imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 54.23commissioner monthly in the following manner:54.24(i) On or before the 14th day of the month following the month in which the taxable 54.25event occurred, the vendor must remit to the commissioner 90 percent of the estimated 54.26liability for the month in which the taxable event occurred.54.27(ii) On or before the 20th day of the month in which the taxable event occurs, the 54.28vendor must remit to the commissioner a prepayment for the month in which the taxable 54.29event occurs equal to 67 percent of the liability for the previous month.54.30(iii) On or before the 20th day of the month following the month in which the taxable 54.31event occurred, the vendor must pay any additional amount of tax not previously remitted 54.32under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 54.33the vendor's liability for the month in which the taxable event occurred, the vendor may 54.34take a credit against the next month's liability in a manner prescribed by the commissioner.55.1(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 55.2continue to make payments in the same manner, as long as the vendor continues having a 55.3liability of $120,000 or more during the most recent fiscal year ending June 30.55.4(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 55.5payment in the first month that the vendor is required to make a payment under either item 55.6(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 55.7subsequent monthly payments in the manner provided in item (ii).55.8(vi) For vendors making an accelerated payment under item (ii), for the first month 55.9that the vendor is required to make the accelerated payment, on the 20th of that month, the 55.10vendor will pay 100 percent of the liability for the previous month and a prepayment for 55.11the first month equal to 67 percent of the liability for the previous month.55.12    (b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more 55.13during a fiscal year ending June 30 must remit the June liability for the next year in the 55.14following manner:55.15    (1) Two business days before June 30 of the year, the vendor must remit 90 percent 55.16of the estimated June liability to the commissioner.55.17    (2) On or before August 20 of the year, the vendor must pay any additional amount 55.18of tax not remitted in June.55.19    (c) A vendor having a liability of:55.20    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 55.212009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on 55.22returns due for periods beginning in the all subsequent calendar year years on or before 55.23the 20th day of the month following the month in which the taxable event occurred, or 55.24on or before the 20th day of the month following the month in which the sale is reported 55.25under section 
         289A.18, subdivision 4; or55.26(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 55.27thereafter, must remit by electronic means all liabilities in the manner provided in 55.28paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 55.29year, except for 90 percent of the estimated June liability, which is due two business days 55.30before June 30. The remaining amount of the June liability is due on August 20.55.31(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 55.32religious beliefs from paying electronically shall be allowed to remit the payment by mail. 55.33The filer must notify the commissioner of revenue of the intent to pay by mail before 55.34doing so on a form prescribed by the commissioner. No extra fee may be charged to a 55.35person making payment by mail under this paragraph. The payment must be postmarked 56.1at least two business days before the due date for making the payment in order to be 56.2considered paid on a timely basis.56.3(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 56.4under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 56.5chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 56.6paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 56.7be accelerated as provided in this subdivision.56.8(f) At the start of the first calendar quarter at least 90 days after the cash flow account 56.9established in section 
         16A.152, subdivision 1, and the budget reserve account established in 56.10section 
         16A.152, subdivision 1a, reach the amounts listed in section 
         16A.152, subdivision 56.112
         , paragraph (a), the remittance of the accelerated payments required under paragraph (a), 56.12clause (2), must be suspended. The commissioner of management and budget shall notify 56.13the commissioner of revenue when the accounts have reached the required amounts. 56.14Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of 56.15$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the 56.16taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day 56.17of the month following the month in which the taxable event occurred. Payments of tax 56.18liabilities for taxable events occurring in June under paragraph (b) are not changed.56.19EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 56.202013, and all fiscal years thereafter.56.21    Sec. 6. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:56.22    Subd. 2a. Electronic payments. If the aggregate amount of estimated tax payments 56.23made is:56.24(1) $20,000 or more in the fiscal year ending June 30, 2005; or56.25(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 56.26thereafter,56.27all estimated tax payments in the all subsequent calendar year years must be paid by 56.28electronic means.56.29EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 56.302013, and all fiscal years thereafter.56.31    Sec. 7. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:56.32    Subd. 4. Electronic payments. A taxpayer with an aggregate tax liability of:56.33(1) $20,000 or more in the fiscal year ending June 30, 2005; or57.1(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 57.2thereafter,57.3must remit all liabilities by electronic means in the all subsequent calendar year years.57.4EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 57.52013, and all fiscal years thereafter.57.6    Sec. 8. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:57.7    Subd. 7. Electronic payment. A cigarette or tobacco products distributor having a 57.8liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in 57.9the all subsequent calendar year years by electronic means.57.10EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 57.112013, and all fiscal years thereafter.57.12    Sec. 9. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:57.13    Subd. 6. Electronic payments. A licensed brewer, importer, or wholesaler having 57.14an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit 57.15all excise tax liabilities in the all subsequent calendar year years by electronic means.57.16EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 57.172013, and all fiscal years thereafter.57.18    Sec. 10. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.57.19    Subdivision 1.Surcharge.Each insurer engaged in the writing of policies of 57.20automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle 57.21for every six months of coverage, on each policy of automobile insurance providing 57.22comprehensive insurance coverage issued or renewed in this state. The surcharge may not 57.23be considered premium for any purpose, including the computation of premium tax or 57.24agents' commissions. The amount of the surcharge must be separately stated on either a 57.25billing or policy declaration sent to an insured. Insurers shall remit the revenue derived 57.26from this surcharge to the commissioner of revenue for purposes of the automobile theft 57.27prevention program described in section 65B.84. For purposes of this subdivision, "policy 57.28of automobile insurance" has the meaning given it in section 65B.14, covering only the 57.29following types of vehicles as defined in section 168.002:57.30(1) a passenger automobile;57.31(2) a pickup truck;57.32(3) a van but not commuter vans as defined in section 168.126; or58.1(4) a motorcycle,58.2except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included 58.3within this definition.58.4    Subd. 2.Automobile theft prevention account.A special revenue account in 58.5the state treasury shall be credited with the proceeds of the surcharge imposed under 58.6subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to 58.7the general fund. Revenues in excess of $1,300,000 each year may be used only for the 58.8automobile theft prevention program described in section 65B.84.58.9    Subd. 3.Collection and administration.The commissioner shall collect and 58.10administer the surcharge imposed by this section in the same manner as the taxes imposed 58.11by this chapter.58.12EFFECTIVE DATE.This section is effective for premiums collected after June 58.1330, 2013.58.14    Sec. 11. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision 58.15to read:58.16    Subd. 10.Automobile theft prevention surcharge.On or before May 1, August 58.171, November 1, and February 1 of each year, every insurer required to pay the surcharge 58.18under section 297I.11 shall file a return with the commissioner for the preceding 58.19three-month period ending March 31, June 30, September 30, and December 31, in the 58.20form prescribed by the commissioner.58.21EFFECTIVE DATE.This section is effective for premiums collected after June 58.2230, 2013.58.23    Sec. 12. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:58.24    Subd. 2. Electronic payments. If the aggregate amount of tax and surcharges due 58.25under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or 58.26if the taxpayer is required to make payment of any other tax to the commissioner by 58.27electronic means, then all tax and surcharge payments in the all subsequent calendar year58.28 years must be paid by electronic means.58.29EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 58.302013, and all fiscal years thereafter.58.31    Sec. 13. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:59.1    Subd. 3. Payment of fee. On or before the 20th day of each month each operator 59.2shall pay the fee due under this section for the previous month, using a form provided 59.3by the commissioner of revenue.59.4An operator having a fee of $10,000 or more during a fiscal year ending June 30 59.5must pay all fees in the all subsequent calendar year years by electronic means.59.6EFFECTIVE DATE.This section is effective for the fiscal year ending June 30, 59.72013, and all fiscal years thereafter.59.8    Sec. 14. DATA SECURITY AUDIT.59.9The legislative auditor is requested, as resources permit, to conduct a data security 59.10audit under Minnesota Statutes, section 3.971, subdivision 6a, of the Department of 59.11Revenue's use of debit cards as payment for tax refunds.59.12    Sec. 15.  REPEALER.59.13(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed 59.14effective for premiums collected after June 30, 2013.59.15(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final 59.16enactment.59.17ARTICLE 659.18COMPENSATION COUNCIL59.19    Section 1. Minnesota Statutes 2012, section 3.855, subdivision 3, is amended to read:59.20    Subd. 3. Other salaries and compensation plans. The commission shall also:59.21    (1) review and approve, reject, or modify a plan for compensation and terms and 59.22conditions of employment prepared and submitted by the commissioner of management 59.23and budget under section 
         43A.18, subdivision 2, covering all state employees who are 59.24not represented by an exclusive bargaining representative and whose compensation is not 59.25provided for by chapter 43A or other law;59.26    (2) review and approve, reject, or modify a plan for total compensation and terms 59.27and conditions of employment for employees in positions identified as being managerial 59.28under section 
         43A.18, subdivision 3, whose salaries and benefits are not otherwise 59.29provided for in law or other plans established under chapter 43A;59.30    (3) review and approve, reject, or modify recommendations for salaries submitted 59.31by the governor or other an appointing authority other than the governor under section 59.3215A.0815, subdivision 5
         , covering agency head positions listed in section 
         15A.0815;60.1    (4) review and approve, reject, or modify recommendations for salaries salary 60.2range of officials of higher education systems under section 
         15A.081, subdivisions 7b 60.3and subdivision 7c;60.4    (5) review and approve, reject, or modify plans for compensation, terms, and 60.5conditions of employment proposed under section 
         43A.18, subdivisions 3a, 3b, and 4; and60.6    (6) review and approve, reject, or modify the plan for compensation, terms, and 60.7conditions of employment of classified employees in the office of the legislative auditor 60.8under section 
         3.971, subdivision 2.60.9EFFECTIVE DATE.This section is effective the day following final enactment.60.10    Sec. 2. Minnesota Statutes 2012, section 15A.0815, subdivision 1, is amended to read:60.11    Subdivision 1. Salary limits. The governor or other appropriate appointing 60.12authority shall set the salary rates for positions listed in this section within the salary limits 60.13listed in subdivisions 2 to 4,. If the appointing authority is not the governor, the appointing 60.14authority's action is subject to approval of the Legislative Coordinating Commission and the 60.15legislature as provided by subdivision 5 and sections 
         3.855 and 
         15A.081, subdivision 7b.60.16EFFECTIVE DATE.This section is effective the day following final enactment.60.17    Sec. 3. Minnesota Statutes 2012, section 15A.0815, subdivision 2, is amended to read:60.18    Subd. 2. Group I salary limits.The salaries for positions in this subdivision may 60.19not exceed 95 percent of the salary of the governor: The salary for a position listed in this 60.20subdivision shall not exceed 133 percent of the salary of the governor. This limit must 60.21be adjusted annually on January 1. The new limit must equal the limit for the prior year 60.22increased by the percentage increase, if any, in the Consumer Price Index for all urban 60.23consumers from October of the second prior year to October of the immediately prior year. 60.24The commissioner of management and budget must publish the limit on the department's 60.25Web site. This subdivision applies to the following positions:60.26    Commissioner of administration;60.27    Commissioner of agriculture;60.28    Commissioner of education;60.29    Commissioner of commerce;60.30    Commissioner of corrections;60.31    Commissioner of health;60.32    Executive director, Minnesota Office of Higher Education;60.33    Commissioner, Housing Finance Agency;61.1    Commissioner of human rights;61.2    Commissioner of human services;61.3    Commissioner of labor and industry;61.4Commissioner of management and budget;61.5    Commissioner of natural resources;61.6    Director of Office of Strategic and Long-Range Planning;61.7    Commissioner, Pollution Control Agency;61.8    Executive director, Public Employees Retirement Association;61.9    Commissioner of public safety;61.10    Commissioner of revenue;61.11    Executive director, State Retirement System;61.12    Executive director, Teachers Retirement Association;61.13    Commissioner of employment and economic development;61.14    Commissioner of transportation; and61.15    Commissioner of veterans affairs.61.16EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.61.17    Sec. 4. Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to read:61.18    Subd. 3. Group II salary limits.The salaries for positions in this subdivision may 61.19not exceed 85 percent of the salary of the governor. The salary for a position listed in this 61.20subdivision shall not exceed 120 percent of the salary of the governor. This limit must 61.21be adjusted annually on January 1. The new limit must equal the limit for the prior year 61.22increased by the percentage increase, if any, in the Consumer Price Index for all urban 61.23consumers from October of the second prior year to October of the immediately prior year. 61.24The commissioner of management and budget must publish the limit on the department's 61.25Web site. This subdivision applies to the following positions:61.26    Executive director of Gambling Control Board;61.27    Commissioner, Iron Range Resources and Rehabilitation Board;61.28    Commissioner, Bureau of Mediation Services;61.29    Ombudsman for Mental Health and Developmental Disabilities;61.30    Chair, Metropolitan Council;61.31    School trust lands director;61.32    Executive director of pari-mutuel racing; and61.33    Commissioner, Public Utilities Commission.61.34EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.62.1    Sec. 5. Minnesota Statutes 2012, section 15A.0815, subdivision 5, is amended to read:62.2    Subd. 5. Appointing authorities to recommend certain salaries. (a) When 62.3the governor is the appointing authority, the governor, or other appropriate appointing 62.4authority, may submit to the Legislative Coordinating Commission recommendations for62.5 must establish salaries within the salary limits for the positions listed in subdivisions 62.62 to 4. An appointing authority may also propose additions or deletions of positions 62.7from those listed. Before establishing a salary, the governor must consult with the 62.8commissioner of management and budget concerning the salary. In establishing the salary, 62.9the governor shall consider the criteria established in section 43A.18, subdivision 8, and 62.10the performance of individual incumbents. The performance evaluation must include a 62.11review of an incumbent's progress toward attainment of affirmative action goals. The 62.12governor shall establish an objective system for quantifying knowledge, abilities, duties, 62.13responsibilities, and accountabilities, and in determining recommendations rate each 62.14position by this system.62.15(b) An appointing authority other than the governor may submit to the Legislative 62.16Coordinating Commission recommendations for salaries within the salary limits for the 62.17positions listed in subdivisions 2 to 4.62.18(b) Before submitting the recommendations, the appointing authority shall consult 62.19with the commissioner of management and budget concerning the recommendations.62.20(c) In making recommendations, the appointing authority shall consider the 62.21criteria established in section 
         43A.18, subdivision 8, and the performance of individual 62.22incumbents. The performance evaluation must include a review of an incumbent's progress 62.23toward attainment of affirmative action goals. The appointing authority shall establish 62.24an objective system for quantifying knowledge, abilities, duties, responsibilities, and 62.25accountabilities, and in determining recommendations, rate each position by this system.62.26(d) Before the appointing authority's recommended salaries take effect, the 62.27recommendations must be reviewed and approved, rejected, or modified by the Legislative 62.28Coordinating Commission and the legislature under section 
         3.855, subdivisions 2 and 62.293
         . If, when the legislature is not in session, the commission fails to reject or modify 62.30salary recommendations of the governor within 30 calendar days of their receipt, the 62.31recommendations are deemed to be approved.62.32(c) The governor or other appointing authority may propose additions or deletions of 62.33positions from those listed in subdivisions 2 to 4.62.34(e) (d) The governor or other appointing authority shall set the initial salary of a 62.35head of a new agency or a chair of a new metropolitan board or commission whose salary 62.36is not specifically prescribed by law after consultation with the commissioner, whose 63.1recommendation is advisory only. The amount of the new salary must be comparable to the 63.2salary of an agency head or commission chair having similar duties and responsibilities.63.3(f) (e) The salary of a newly appointed head of an agency or chair of a metropolitan 63.4agency listed in subdivisions 2 to 4 who is appointed by someone other than the governor, 63.5may be increased or decreased by the appointing authority from the salary previously 63.6set for that position within 30 days of the new appointment after consultation with 63.7the commissioner. If the appointing authority increases a salary under this paragraph, 63.8the appointing authority shall submit the new salary to the Legislative Coordinating 63.9Commission and the full legislature for approval, modification, or rejection under section 63.103.855, subdivisions 2 and 3
         . If, when the legislature is not in session, the commission fails 63.11to reject or modify salary recommendations of the governor within 30 calendar days of 63.12their receipt, the recommendations are deemed to be approved.63.13EFFECTIVE DATE.This section is effective the day following final enactment.63.14    Sec. 6. Minnesota Statutes 2012, section 15A.082, subdivision 1, is amended to read:63.15    Subdivision 1. Creation. A Compensation Council is created each even-numbered63.16 odd-numbered year to assist the legislature in establishing the compensation of 63.17constitutional officers, members of the legislature, justices of the Supreme Court, judges 63.18of the Court of Appeals and district court, and the heads of state and metropolitan agencies 63.19included in section 
         15A.0815.63.20    Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 2, is amended to read:63.21    Subd. 2. Membership. The Compensation Council consists of 16 members: two 63.22members of the house of representatives appointed by the speaker of the house, who are 63.23not members of the legislature; two members of the senate appointed by the majority 63.24leader of the senate, who are not members of the legislature; one member of the house 63.25of representatives appointed by the minority leader of the house of representatives, who 63.26is not a member of the legislature; one member of the senate appointed by the minority 63.27leader of the senate, who is not a member of the legislature; two nonjudges appointed by 63.28the chief justice of the Supreme Court; and one member from each congressional district 63.29appointed by the governor, of whom no more than four may belong to the same political 63.30party. Appointments must be made by October 1 after the first Monday in January and 63.31before January 15. The compensation and removal of members appointed by the governor 63.32or the chief justice shall be as provided in section 
         15.059, subdivisions 3 and 4. The 63.33Legislative Coordinating Commission shall provide the council with administrative and 63.34support services.64.1EFFECTIVE DATE.This section is effective the day following final enactment.64.2    Sec. 8. Minnesota Statutes 2012, section 15A.082, subdivision 3, is amended to read:64.3    Subd. 3. Submission of recommendations. (a) By May 1 March 15 in each 64.4odd-numbered year, the Compensation Council shall submit to the speaker of the house 64.5and the president of the senate salary recommendations for constitutional officers, 64.6legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 64.7court. The recommended salary for each office must take effect on the first Monday in 64.8January of the next odd-numbered year, with no more than one adjustment, to take effect 64.9on January 1 of the year after that. The salary recommendations for legislators, judges, and 64.10constitutional officers take effect if an appropriation of money to pay the recommended 64.11salaries is enacted after the recommendations are submitted and before their effective date. 64.12Recommendations may be expressly modified or rejected. The salary recommendations 64.13for legislators are subject to additional terms that may be adopted according to section 64.143.099
         , subdivisions 1 and 3.64.15(b) The council shall also submit to the speaker of the house and the president of 64.16the senate recommendations for the salary ranges of the heads of state and metropolitan 64.17agencies, to be effective retroactively from January 1 of that year if enacted into law. The 64.18recommendations shall include the appropriate group in section 
         15A.0815 to which each 64.19agency head should be assigned and the appropriate limitation on the maximum range of 64.20the salaries of the agency heads in each group, expressed as a percentage of the salary of 64.21the governor.64.22    Sec. 9. Minnesota Statutes 2012, section 43A.17, subdivision 1, is amended to read:64.23    Subdivision 1. Salary limits. As used in subdivisions 1 to 9, "salary" means hourly, 64.24monthly, or annual rate of pay including any lump-sum payments and cost-of-living 64.25adjustment increases but excluding payments due to overtime worked, shift or equipment 64.26differentials, work out of class as required by collective bargaining agreements or plans 64.27established under section 
         43A.18, and back pay on reallocation or other payments related 64.28to the hours or conditions under which work is performed rather than to the salary range 64.29or rate to which a class is assigned. For presidents of state universities, "salary" does 64.30not include a housing allowance provided through a compensation plan approved under 64.31section 
         43A.18, subdivision 3a.64.32The salary, as established in section 15A.0815, of the head of a state agency in the 64.33executive branch is the upper limit on the salaries of individual employees in the agency. 64.34However, if an agency head is assigned a salary that is lower than the current salary of 65.1another agency employee, the employee retains the salary, but may not receive an increase 65.2in salary as long as the salary is above that of the agency head. The commissioner may 65.3grant exemptions from these upper limits as provided in subdivisions 3 and 4.65.4EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.65.5    Sec. 10. Minnesota Statutes 2012, section 43A.17, subdivision 3, is amended to read:65.6    Subd. 3. Unusual employment situations. (a) Upon the request of the appointing 65.7authority, and when the commissioner determines that changes in employment situations 65.8create difficulties in attracting or retaining employees, the commissioner may approve an 65.9unusual employment situation increase to advance an employee within the compensation 65.10plan salary range.65.11(b) If the commissioner determines that a position requires special expertise 65.12necessitating a higher salary to attract or retain qualified persons, the commissioner may 65.13grant an exemption not to exceed 120 percent of the salary of the head of the agency or the 65.14maximum rate established for the position, whichever is less.65.15(c) The following conditions apply to a request under paragraph (a) to advance an 65.16employee within a compensation plan or under paragraph (b) to exceed the salary of the 65.17agency head salary range:65.18(1) the appointing authority making the request must submit a detailed written 65.19statement for each position contained in the request, specifying the changes in employment 65.20situations that create difficulties in attracting or retaining an employee for the position;65.21(2) the commissioner shall review each proposal giving due consideration to salary 65.22rates paid to other employees in the same class and agency and, if other conditions in 65.23this paragraph are met, may approve any request that in the commissioner's judgment is 65.24in the best interest of the state;65.25(3) the action must be consistent with applicable provisions of collective bargaining 65.26agreements or plans adopted under section 
         43A.18;65.27(4) each increase or exemption must be separately documented for each employee or 65.28position and may not be applied to groups of employees; and65.29(5) the commissioner shall report the granting of a request to the chair of the 65.30Legislative Coordinating Commission within three working days.65.31EFFECTIVE DATE.This section is effective the day following final enactment.65.32    Sec. 11. COMPENSATION STUDY.66.1The commissioner of management and budget must contract with an independent 66.2consultant to conduct a comprehensive market analysis of compensation for managerial 66.3positions in the executive branch in order to better align compensation for these positions 66.4with comparable positions in the private sector and with other relevant public sector 66.5employers. The analysis should evaluate total compensation, including insurance, 66.6retirement, and performance pay.66.7EFFECTIVE DATE.This section is effective the day following final enactment.66.8    Sec. 12. CONSTITUTIONAL OFFICERS SALARIES.66.9The salary of the governor is increased by three percent effective January 1, 2015, 66.10and by three percent on January 1, 2016. The salaries of the other constitutional officers 66.11shall be adjusted to retain their proportional relationship as of January 1, 2013, to the 66.12salary of the governor.66.13EFFECTIVE DATE.This section is effective the day following final enactment.66.14    Sec. 13. REPEALER.66.15Minnesota Statutes 2012, section 43A.17, subdivision 4, is repealed."66.16Delete the title and insert:66.17"A bill for an act66.18relating to the operation of state government; providing funding for the legislature, 66.19constitutional officers and other agencies, boards, councils, commissions, and 66.20state entities; changing certain state government programs; changing powers and 66.21duties of certain state officers; repealing the Minnesota Sunset Act; requiring the 66.22chair of the Legislative Advisory Commission alternate between a member of 66.23the senate and a member of the house of representatives; requiring the chair of 66.24the Legislative Advisory Commission be a senate member in 2013; allowing 66.25the Legislative Advisory Commission to accept grants and gifts related to the 66.26commission's duties; requiring data security audits by the legislative auditor 66.27under certain circumstances; requiring notification of the legislative auditor when 66.28public resources have been used unlawfully or government data has been accessed 66.29unlawfully; allowing the secretary of state authority to accept funds from local 66.30government units for election systems enhancements and to receive certain funds 66.31for the address confidentiality program; allowing the state auditor to change a 66.32onetime user fee for a small city and town accounting system software; changing 66.33provisions for bid solicitations and proposals; changing certain provisions for 66.34service contracts and the solicitation process; requiring a determination of the 66.35information technology cost for agency technology cost for agency technology 66.36projects; expanding E-Government initiative and establishing the E-Government 66.37Advisory Council; allowing a convenience fee for users of NorthStar or online 66.38government information services; changing certain audit provisions relating to 66.39duties of the state auditor and the legislative auditor; allowing the state auditor 66.40to bill counties and political subdivisions periodically for services rendered; 66.41establishing a state auditor enterprise fund; modifying provisions for general 66.42noncommercial radio station and equipment grants; removing investigative 66.43powers of the Mississippi River Parkway Commission; changing a paid military 67.1leave provision; modifying provisions in the Veterans Service Office grant 67.2program; changing provisions in the Minnesota GI Bill program; establishing 67.3presumption of rehabilitation by an honorable discharge status from military 67.4service following a prior offense; providing for a bid preference for contracts 67.5for veteran-owned small businesses; allowing active duty service members to 67.6take a peace officer reciprocity exam; making Department of Revenue changes; 67.7establishing electronic filing requirements; establishing an automobile theft 67.8prevention surcharge; requesting the legislative auditor conduct a data security of 67.9the Department of Revenue's use of debit cards for tax refunds; adjusting certain 67.10salary groups; making compensation council changes; requiring a compensation 67.11study; adjusting constitutional officers salaries; requiring reports; appropriating 67.12money;amending Minnesota Statutes 2012, sections 3.30, subdivision 2; 3.303, 67.13by adding a subdivision; 3.85, subdivisions 8, 9; 3.855, subdivision 3; 3.885, by 67.14adding a subdivision; 3.971, subdivision 6, by adding subdivisions; 6.48; 6.56, 67.15subdivision 2; 13.591, subdivision 3; 15A.0815, subdivisions 1, 2, 3, 5; 15A.082, 67.16subdivisions 1, 2, 3; 16A.10, subdivision 1c; 16A.82; 16C.02, subdivision 67.1713; 16C.06, subdivision 2; 16C.09; 16C.10, subdivision 6; 16C.145; 16C.33, 67.18subdivision 3; 16C.34, subdivision 1; 16E.07, by adding a subdivision; 32C.04; 67.1943A.17, subdivisions 1, 3; 65B.84, subdivision 1; 129D.14, subdivisions 2, 3; 67.20129D.15; 129D.155; 161.1419, subdivision 3; 192.26; 197.608, subdivisions 67.211, 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, subdivision 2; 254A.04; 67.22256B.093, subdivision 1; 260.835, subdivision 2; 270C.69, subdivision 1; 67.23289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 295.55, subdivision 67.244; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a 67.25subdivision; 297I.35, subdivision 2; 364.03, subdivision 3; 469.3201; 471.699; 67.26473.843, subdivision 3; 626.8517; Laws 2012, chapter 278, article 1, section 5; 67.27article 2, sections 27; 34; proposing coding for new law in Minnesota Statutes, 67.28chapters 5; 5B; 6; 16E; 297I; 471; repealing Minnesota Statutes 2012, sections 67.293.304, subdivisions 1, 5; 3.885, subdivision 10; 3D.01; 3D.02; 3D.03; 3D.04; 67.303D.045; 3D.05; 3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 67.313D.13; 3D.14; 3D.15; 3D.16; 3D.17; 3D.18; 3D.19; 3D.20; 3D.21, subdivisions 67.322, 3, 4, 5, 6, 7, 8; 6.58; 43A.17, subdivision 4; 168A.40, subdivisions 3, 4; 67.33197.608, subdivision 2a; 270C.145; Laws 2012, chapter 278, article 1, section 6."

We request the adoption of this report and repassage of the bill.Senate Conferees:
                     							.....
                     						
                     							.....
                     						Tom SaxhaugRichard J. Cohen
                     							.....
                     						
                     							.....
                     						Chris A. EatonBobby Joe Champion
                     							.....
                     						Melisa FranzenHouse Conferees:
                     							.....
                     						
                     							.....
                     						Mary MurphyJerry Newton
                     							.....
                     						
                     							.....
                     						Michael V. NelsonSteve Simon
                     							.....
                     						John Persell